December 11, 2013 / 3:21 PM / 4 years ago

Bond mutual funds post record $70.7 bln outflow so far this year -TrimTabs

Dec 11 (Reuters) - U.S.-listed bond mutual funds have posted an outflow of $70.7 billion so far in 2013, surpassing the previous annual record outflow of $62.5 billion in 1994, TrimTabs Investment Research said on Wednesday.

“The ‘taper talk’ that started in May proved to be a huge inflection point for the credit markets,” said David Santschi, chief executive officer of TrimTabs.

Bond mutual funds have experienced outflows for seven consecutive months after they posted inflows in each of the preceding 21 months,” Santschi said. “The reaction to the prospect of ‘tapering’ among retail investors has been pretty violent even though the Fed hasn’t made any changes to its bond buying program,” said Santschi. “What will happen when the Fed actually takes action?”

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