Fri, 4 Jan 2013
Read the rest of this article on Advisor One
Massive purchases of U.S. debt by the Fed and foreign governments has suppressed yields, pushing the risk/reward trade-off out of balance, says PIMCO's Bill Gross .
Emerging-markets and high-yield bond funds were the hardest hit last quarter, while funds with exposure to Treasuries and higher-quality issues outperformed, says Morningstar's Sarah Bush.
The Fed has played a key role in nudging the recovery along, but the taper of bond purchases won't torpedo the economy, says Morningstar's Bob Johnson.
PIMCO Manager Bill Gross says it is unthinkable that the U.S. would default on its obligations but that right now debt from nations such as Canada, Brazil, and Germany offer better yields and less risk.
©2014 Morningstar Advisor. All right reserved.