Edition:
United States

Jennifer Ablan

Guggenheim's Scott Minerd warns world bond markets are in a 'bubble'

Aug 22 2019

The bond market is in a "bubble," particularly sovereign debt, Guggenheim Partners global chief investment officer Scott Minerd warned on Thursday, and he said that efforts by the Federal Reserve to head off a recession by cutting interest rates will ultimately prove futile.

DoubleLine's Jeffrey Gundlach says Federal Reserve has lost control

Aug 20 2019

The Federal Reserve has lost control of interest rates as evidenced by the federal funds rate trading higher than any part of the U.S. Treasury yield curve, Jeffrey Gundlach, the chief executive of DoubleLine Capital, said on Tuesday.

Pimco Income Fund, run by Dan Ivascyn, whipsawed by big bond rally

Aug 18 2019

NEW YORK The massive rally in Treasuries has whipsawed the biggest name in the bond world.

UPDATE 2-U.S. Treasury, investment-grade and money funds attract $16.6 bln in risk-averse week

Aug 15 2019

(Adds table) By Jennifer Ablan Aug 15 Investors rushed into their favorite safe-haven assets such as Treasuries, investment-grade corporate bonds and money market funds in the latest week, which was marked by rising tensions over the U.S.-China trade war and the global economic slowdown. U.S.-based money-market funds attracted roughly $10.6 billion in the week ended Wednesday, the second straight week of inflows, according to Refinitiv's Lipper. U.S.-based investment-grade corporate bond funds attracted more than $4 billion and U.S.-based government and Treasury funds attracted more than $2 billion, Lipper data showed. Stocks plunged on Wednesday in the Dow Jones Industrial Average's worst performance of 2019 - 800.49 points or 3.05% to 25,479.42 after the bond market flashed a worrying signal about the U.S. economy. "Money went into safe havens, which is what you would expect after yesterday, but this is the continuation of long-term trends," said Pat Keon, senior research analyst at Lipper. Taxable bond funds took in net new money totaling more than $5.8 billion for the 11th week in 12, Keon said. Equity mutual funds extended their losing streak to 26 straight net outflows at negative $4.6 billion, he said. "Equity ETFs, an asset group where we’ve seen some week-to-week variation between net inflows and net outflows did the opposite of what you would expect from the markets and had net inflows of $7.7 billion," Keon said. The SPDR S&P 500 ETF Trust and the Invesco QQQ Trust Series 1 "paved the way here" with net inflows of $5.9 billion and $2.9 billion, respectively, he said. All told, Keon said "What stands out to me is I don’t see any reaction to yesterday's market turmoil in the flows results. Specifically, I would have expected to see net outflows from equity ETFs and maybe a larger net inflow into money markets." The following is a broad breakdown of the flows for the week, including mutual funds and exchange-traded funds: Sector Flow Chg % Assets Assets Count ($Bil) ($Bil) All Equity Funds 3.101 0.04 6,958.321 11,726 Domestic Equities 4.459 0.09 5,004.499 8,327 Non-Domestic -1.357 -0.07 1,953.822 3,399 Equities All Taxable Bond 5.756 0.19 2,986.518 5,839 Funds All Money Market 10.587 0.33 3,229.220 1,014 Funds All Municipal 1.625 0.33 493.511 1,343 Bond Funds (Reporting by Jennifer Ablan; Editing by Grant McCool and Chris Reese)

DoubleLine CEO Jeffrey Gundlach warns Fed rate cuts will not stop U.S. recession

Aug 14 2019

Jeffrey Gundlach, chief executive of DoubleLine Capital, warned on Wednesday that rate cuts by the U.S. Federal Reserve were not going to stop a recession from happening and that "once the Fed is in easing mode, it is already too late."

U.S.-based high-yield junk bond funds post largest weekly outflow since October

Aug 08 2019

U.S.-based high-yield junk bond funds posted more than $4 billion of outflows in the week ended Wednesday, the largest weekly cash withdrawals since October 2018, according to Refinitiv's Lipper data, triggered by an escalating trade war between China and the United States.

Negative U.S. bond yields may become reality: PIMCO

Aug 07 2019

Investors may have to grapple with the possibility of the once-unthinkable becoming reality - negative U.S. Treasury bond yields, according to money manager Pacific Investment Management Co (PIMCO).

Big U.S. investors use summer sell-off to ramp up bets

Aug 05 2019

NEW YORK The summer sell-off is finally here - and not all U.S. investors are rattled by it.

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