Thursday, March 31, 2016

"TIPS Are King in Good Quarter for U.S. Fixed Income"

Everywhere you look.
The popularity is starting to get scary.

From MoneyBeat:
Investors in U.S. fixed income should be pleased: Many corners of the bond markets delivered decent returns during the first three months of 2016 despite a roller-skates ride.

The biggest winner in the first quarter was Treasury inflation-protected securities, which delivered a return of 4.17% through March 30, according to data from Barclays. That was the biggest quarterly return since the last quarter of 2011. Return includes price gains and interest payments.
Investment-grade corporate debt was the runner-up with 3.62% return. Their sibling–bonds sold by lower-rated firm, or junk debt, followed with 3.1% return.

U.S. Treasury bond market posted 2.94% return; mortgage-backed securities returned 1.83% and municipal bonds returned 1.5%.

Solid return from both haven debt and riskier assets suggest investors remain cautious on the global economic outlook. While stocks, junk bonds and oil have been strengthening over the past few weeks, the brutal selloff between the start of the year and mid-February left many investors skittish.
“We are still stuck in low growth and I don’t see an upswing trend in commodities,” said Jack Flaherty, portfolio manager at money manager GAM, which has over $119 billion in global assets under management.

Some analysts say the risk of market turmoil has diminished thanks to continued support from large central banks around the world.

The European Central Bank beefed up monetary stimulus earlier this month, the Bank of Japan has signaled there is room for more stimulus. China’s central bank has also been in easing mode, and analysts say the risk of a large devaluation of the Chinese yuan has been reduced for the foreseeable future....MORE
See also at MoneyBeat:
TIPS ETF Grows to Largest Level Since 2013

For those folks in search of solitude, maybe shorting more corn futures?