Advisers rethink bonds as rising interest rates nibble on returns

06/10/2013 | InvestmentNews (free registration) · Bloomberg

Volatility on returns in bond funds as a result of rising interest rates and fears over the Federal Reserve Bank's next moves are causing some advisers to rethink bond allocations in client portfolios. Bond funds recently had their second-worst withdrawal week in two decades as investors pulled $9.1 billion from fixed income mutual funds and exchange-traded funds. Bond fund managers are responding by diversifying holdings, as are advisers, though not all are recommending that clients exit the bond market.

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InvestmentNews (free registration) · Bloomberg

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