There's a shortage of debt ... Now they tell us?


It may not be the top for fixed-income, but "Bond Market Shortfall of $460B Seen Boosting Debt Markets" is the sort of headline you won't see at the bottom. The article from Bloomberg takes note of a JPMorgan analysis expecting debt issued this year to fall $600M from 2013 to $1.8T, while demand increases to $2.26T.

Globally, bonds have returned 3.7% YTD, their best start to the year since 2003, according to the BAML Global Broad Market Index.

"Everybody was expecting supply to come down, but maybe it’s coming down sooner” than anticipated, says SEI Investment's Sean Simko. “There’s a shift in sentiment from the beginning of the year when everyone expected rates to move higher.”

ETFs: AGG, BOND, BND, SCHZ, LAG, SAGG, DI, GBF, RIGS, LDUR, FWDB

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  • gespecht
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    There’s a shift in sentiment from the beginning of the year when everyone expected rates to move higher.”

     

    I may be dumb, but I didn't expect rates to go higher. If rates would go higher I would be retired tomorrow along with the other baby boomers. I have a little cash in case I find the person that wants to wager some on this issue. Just imagine getting a fair return on our savings. Then go ahead and load your bong again to smell some reality.
    10 Jun 2014, 08:52 PM Reply Like
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