Bonds Fall Out of Favour

Investors are selling their bond funds in droves – after Ben Bernanke’s QE comments inspire stock market confidence

Emma Wall 30 July, 2013 | 3:21PM

The Investment Management Association recorded the greatest number of bond fund sales on record in June – thanks to the news that the US is to begin tapering its quantitative easing package.

Following Ben Bernanke’s comments, Andy Haldane, the Bank of England executive director responsible for financial stability told MPs that the "biggest bond bubble in history" was at risk of bursting.

The threat of capital loss has proved too great for investors who have pulled £624 million out of bond funds according to the IMA.

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Emma Wall  is former Senior International Editor for Morningstar

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