Investors are flocking back into CDOs – the debt instruments implicated in the financial crisis. But this time hedge funds have a new darling: corporate debt.
In the latest of our beginner’s guides to investing, Merryn Somerset Webb explains the basics of bonds.
Very few assets around the world are cheap these days, making US high-yield junk bonds tempting. But be careful. A new default cycle is looming.
Lloyds Bank’s decision to redeem £3bn-worth of bonds has been slammed by investors as unfair and premature. Sarah Moore reports.
Investing in bonds usually means piling into a managed bond fund. But as Bengt Saelensminde explains, that makes little sense in today’s markets.
In the past few years, yield-starved investors have stampeded into high-yield corporate debt. But junk bonds aren’t looking so attractive anymore.
The high-yield or junk bonds market hit the headlines this week, with the failure of Third Avenue Management, the biggest failure of a fund aimed at retail investors since 2008.
The desperate hunt for yield has left the corporate bond market vulnerable to interest rate rises. With US rates now climbing, things could get very painful, says John Stepek
America’s biggest mutual fund failure since 2008 is a sign of serious problems in the bond markets, says John Stepek. Equity markets could well be next.
The lack of liquidity in the bond market could see a sell-off turn into a rout, with prices tumbling as everyone tries to sell – but nobody wanting to buy.
The price crash of a London-listed bond should be a salutary reminder that some retail bonds are riskier than investors believe. Marina Gerner explains.