Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Investors have pulled $70.7B from bond mutual funds YTD, according to TrimTabs - that's more than the $62.5B pulled amid the serial Fed rate hikes and bond market rout of 1994. Since June alone, investors have pulled $164.5M out of bond funds, and three of the four largest monthly outflows ever have occurred this year.
The flow values are likely higher with bond etf products; as this area has become a nesting ground for hedge funds and institutions, too.
The above numbers are large, but are dollar valued only; with no indication of percent of total outstanding values of debt/credit (bonds of all flavors).
Per Pimco, via data from the BIS (Bank of International Settlements); global debt/credit outstanding is in the $90-100 TRILLION range. U.S. only debt outstanding is at the $38 TRILLION level.
I will believe the $70.7 billion outflow, as noted above is pure and clean data from somewhere. If I personally move $100k from one bond fund style to another bond fund style, is this just a wash; or an outflow and an inflow into the overall bond sector??? I don't know how the article data is measured.
For bonds/credit and equity areas.....there be a lot of money awash in many areas. All 1's and 0's parked into DRAM memory and elsewhere.
Comments
"$62.50 billion in 1994 is equal to $98.42 billion in 2013.
...just sayin'. "
The above numbers are large, but are dollar valued only; with no indication of percent of total outstanding values of debt/credit (bonds of all flavors).
Per Pimco, via data from the BIS (Bank of International Settlements); global debt/credit outstanding is in the $90-100 TRILLION range. U.S. only debt outstanding is at the $38 TRILLION level.
I will believe the $70.7 billion outflow, as noted above is pure and clean data from somewhere. If I personally move $100k from one bond fund style to another bond fund style, is this just a wash; or an outflow and an inflow into the overall bond sector??? I don't know how the article data is measured.
For bonds/credit and equity areas.....there be a lot of money awash in many areas. All 1's and 0's parked into DRAM memory and elsewhere.
Just some late night jabber.