Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
Blog Home
Bob Carey
Chief Market Strategist
X •  LinkedIn

  It Was Short And Sweet For Bond Investors In Q1
Posted Under: Bond Market
Supporting Image for Blog Post


View from the Observation Deck

  1. Taxable bond fund inflows totaled a net $81 billion in Q1'13, down from $98.5 billion in Q1'12, according to data from Strategic Insight. It tracks 22 separate taxable bond objectives.
  2. Three of the top four objectives, based on net inflows, involved debt maturities/duration ranging from days (Corporate Floating Rate) to "Short Maturity" to "Intermediate Maturity."
  3. When investing in bonds, one of the most common ways to mitigate any potential price erosion from rising interest rates is to shorten one's maturities to lower duration exposure.
  4. Investors appeared to be doing just that in Q1'13. Excluding the Global Bond General objective, the other three objectives in the chart reported net inflows totaling $45.1 billion.
  5. That means that these three objectives, out of 22, accounted for 55.7% of the total net inflows to taxable bond funds in Q1'13. The Global Bond General objective took in $21.1 billion.
  6. In addition to shortening maturities, investors also specifically targeted corporate bond funds. We have characterized corporations as the sweet spot of the market over the past few years.
  7. The following was a featured article in our Quarterly Market Overview from July 2010: "Corporate America looks lean and mean, while the federal government looks tired and bloated."
This chart is for illustrative purposes only and not indicative of any actual investment.

To Download a PDF of this post, please click here

Posted on Thursday, April 25, 2013 @ 4:11 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email

The Epicenter Of The Stock Dividend Story
More Jobs The Key For Equity REITs
Dollar’s Strength Has Not Derailed U.S. Bull Market In Stocks
Discretion Is The Better Part Of Valor
Six S&P 500 Subsectors Have The “Big Mo”
Why Investors Are Playing It Safe
Technology Products Are Becoming Consumer Staples
Creating Value For The Shareholder
Is A Gold Rally Waiting On Inflation?
Home Prices And Homebuilder Stocks Are Still Recovering
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.