Investors are flocking to the short-end of the bond market as money managers declare it one of the safest spots to shelter from the Federal Reserve’s continued tightening of monetary policy and the jitters that have contributed to an October stock-market rout.
Bond fund managers, including the likes of Pimco and BlackRock, have urged turmoil-weary investors to seek shelter in short maturity bonds as higher interest rates push front-end yields to more attractive levels. That has helped dent the argument behind TINA—an acronym for the “there is no alternative”—the mantra that held that investors have few alternatives to stocks in a low interest rate universe.
