Bond Investors Are Fleeing Mutual Funds In A Frenzy

bill gross

Bond mutual funds saw massive withdrawals in the first half of December – $8.62 billion – the most in since the peak of the crisis in October 2008.

Withdrawals shot from $1.66 billion in the first week of the month, to $8.62 by the 15th, Bloomberg said.

“Investors are retreating from bond funds after signs of an economic recovery and a stock market increased speculation that interest rates may rise,” taking $3.77 billion out of taxable bond funds and $4.85 billion from municipal bond funds.

At Pimco’s Total Return Fund, investors yanked out $1.9 billion – the first net withdrawals in two years.

For more go to Bloomberg >

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