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Bond Fund Shackles?
Old 06-22-2014, 11:43 AM   #1
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Bond Fund Shackles?

No Exit From Bond Funds? - Barron's

This weeks Barron's mentions there is talk of restricting liquidations of bond funds. The fear is that massive redemptions could wreck everything, I guess.

FYI- this issue also ranks the best annuities, something everyone here is most definitely interested in. Lol.
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Old 06-22-2014, 12:17 PM   #2
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Quote:
Originally Posted by gcgang View Post
No Exit From Bond Funds? - Barron's

This weeks Barron's mentions there is talk of restricting liquidations of bond funds. The fear is that massive redemptions could wreck everything, I guess.

FYI- this issue also ranks the best annuities, something everyone here is most definitely interested in. Lol.
"To Dan Fuss, the longtime chief investment officer at Loomis Sayles, the exit-fee story seemed like a "trial balloon." But, he added, "from a practical point of view, I don't think it has a snowball's chance in hell, given the resistance from the retail distributors of mutual funds."

This could always be avoided by using ETFs, unless our marvelous government is going to insert themselves into that also.

Still, I think the underlying issue is a real sleeper. It is hard for outsiders to know just what the depth and liquidity in any of these bond markets is. Just because we have a liquid vehicle doesn't make the investment liquid.

Ha
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Old 06-23-2014, 05:27 PM   #3
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Back in the 07/08 mortgage fraud debacle, I called up Fidelity to ask what might happen to my stable value fund (bond fund, including mortgage-backed securities) that I have in a 401K. They said there could possibly be limits set on how much money one could withdraw, if a lot of people wanted to withdraw simultaneously from the stable value fund.
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Old 06-23-2014, 09:12 PM   #4
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bond funds bad in IRA?
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