Bond investors responded to Federal Reserve Chair Janet Yellen’s warnings this week of debt-market complacency by taking on more risk.
Investors in exchange-traded funds that buy junk bonds are shifting into shorter-maturity debt that’s less vulnerable to the Federal Reserve’s withdrawal of stimulus measures.
Treasury five-year notes extended the longest losing streak this year as traders bet improving economic data will push the Federal Reserve to raise rates as early as July 2015.
The green shoots of inflation are coming at about the worst time for corporate-bond investors.
MF Global Holdings Ltd. took the cult of the Wall Street chief executive officer to a new level with its sale of bonds that pay a higher rate if Chairman and CEO Jon Corzine quits to take a job from the U.S. president.
"It was a very successful auction."
- William Larkin on Aug 14, 2014