The Reward for Being First Out in a Bond Run Is 2%
Barclays analysts take a look at redemption fees for junk-bond funds.
Last one out is a rotten return!
Photographer: ALAN CROWHURSTThis article is for subscribers only.
So say Barclays analysts led by Jeffrey Meli.
In a note published on Thursday, the Barclays team takes a fresh look at the already much examined issue of liquidity in the corporate bond market, in which the ability of investors to buy and sell the debt sold by companies without dramatically impacting its price is said to have vastly deteriorated.