New data has revealed that more money was placed into bond funds in October than at any other time during the year as many investors continue to shun the equity markets.
According to EmergingPortfolio.com, a US-based market data provider, asset managers bought a net $996 million worth of bonds in October as a net $135 million flowed out of equity funds.
In a somewhat unexpected show of demand, global bond funds have added a net $5.4 billion so far this year, an increase of 7.4%.
Unusually, the price of the world’s government bond benchmarks have rallied this year whilst base interest rates have been rising, a phenomenon that analysts have attributed to a number of factors including economic growth fears brought on by surging oil prices, and uncertainty surrounding the outcome of the US presidential elections.
"High oil prices, weak earnings results and expectations of slowing growth lured investors out of equities and into bond funds in October," observed Brad Durham, managing director at EmergingPortfolio.com.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment