Thursday, August 22, 2013

Bond Funds Lose $30.3 Billion So Far in August

The flight from bonds is on.

U.S.-registered bond mutual and exchange-traded funds lost $30.3 billion to investor redemptions this month, reports Bloomberg.

The withdrawals for the month through Aug. 19 are already the third-highest on record, following $69.1 billion of withdrawals in June and $42 billion in October 2008, according to a report dated yesterday by TrimTabs Investment Research.

“These outflows mark an enormous shift for the bond world,” TrimTabs said in its report. “A vicious circle of losses and redemptions as the bond binge unwinds could get nasty.”

It should be noted this is coming on top of major foreign sales of US Treasury securities.

1 comment:

  1. But for every seller there is a buyer? Who is buying then (other than the Fed)?