1. If Investors Bail, Will Your Bond Fund Flail?
- Author
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ZWEIG, JASON
- Subjects
- *
BOND funds , *INTEREST rates , *JUNK bonds , *RATE of return on mutual funds , *ATTITUDES of capitalists & financiers , *RATE of return - Abstract
The article examines the potential losses for investors in high-yield or junk bond mutual funds should investors pull money out of stock markets in the event of an increase in interest rates. It discusses a report conducted by researchers at financial services firm Barclays that estimated a 12 percent loss in bond market funds if the junk-bond market declined by 10 percent and mutual fund investors requested a return of 20 percent of their funds. The article presents comments from Barclays head of research Jeffrey Meli.
- Published
- 2015