Loomis Braces for Falling Bond Prices Amid Inflation Alarms
- Loomis Sayles says positioning fund for more inflation ahead
- Joins chorus of investors including Pimco in similar calls
Business of Bond Trading Turned on Its Head
This article is for subscribers only.
Loomis Sayles & Co.’s Vice Chairman Dan Fuss saw how soaring inflation punished debt holders decades ago. He’s now bracing for a sequel.
Fuss, 82, "grew up” buying bonds in an era when consumer price increases went from about 1 percent in the mid-1960s to more than 14 percent in 1980. The sheer amount of cash now chasing yield has him concerned as inflation picks up. The Loomis Sayles Bond Fund has halved the average maturity of its holdings to about 6.6 years from a few years ago, and is offloading some corporate notes it bought after the financial crisis that are trading at a premium.