Bond mutual funds are headed for record redemptions in 2013, removing $70.7 billion so far

Tom McKay

Bond mutual funds are headed for record redemptions in 2013, removing $70.7 billion so far. Unless the trend reverses, the redemptions would surpass a record $62.5 billion removed from bond mutual funds in 1994. Investors have been pulling money since May when Bernanke spoke about the possibility of tapering the stimulus program. Adjusted for the amount of money in bond funds, this year's exodus from fixed-income funds is smaller in percentage terms than the redemptions in 1994. The withdrawals in 2013 amount to about 2.1 percent of the money that was in bond funds at the beginning of the year, In 1994, redemptions equaled 10 percent of the total. Read more: (VIEW LINK)


About this contributor

Tom McKay

Tom McKay

Managing Director and Co-Founder, Livewire

I'm the Managing Director and Co-Founder of Livewire. I'm passionate about collecting and curating the markets most informed insights every day so that our members can discover new investment ideas. If you would like to get in touch - please use...

Expertise

Comments

Please sign in to comment on this wire.
Medium cfaeebf8e4ec484a7a677e2b9426af2e1380496323

Jordan Eliseo

Amazing that 'record' outflows from bond funds don't even equal 1 month of QE from the Fed. No wonder markets are completely controlled/obsessed with central bank decisions

Join the conversation