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|Subject: What I’m Seeing||Date: 5/12/2013 9:37 AM|
|Author: globalist2013||Number: 34935 of 35930|
What I’m seeing as I mark myself to market --as I do each weekend across my 300 plus positions in individual bonds spread across Treasuries, Agencies, Munis, Corporates, Convertibles, and Foreign Sovereigns-- is that the higher-quality stuff is being sold, and the lower-quality stuff is doing quite well.
In other words, bets that are purely (or almost purely) an interest-rate bet are losing money. Bets that are mainly based on an issuer’s credit-worthiness are doing well (or poorly) based on the merits of the underlying, overlaid by a bit of speculative enthusiasm.
Said another way, bond traders and the smart money are unwinding. Bond investors and the dumb money continue to flood into the fixed-income markets.
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