Long Trade in Corporates Brings Pain as Central Banks Deliberate
- Longer-dated corporate bonds have fallen 2.9% since August
- "We’ve had a very good run here," says Loomis fund manager
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Investors are cooling on one of the hottest U.S. corporate bond trades this year.
Corporate bonds maturing in 10 years or more have fallen 2.9 percent in September, according to Bloomberg Barclays index data, a drop that is nearly five times as large as the broader bond market’s decline and that erases some of the double-digit gains of the previous eight months. On Monday, Shire Plc became the first company this year to sell more than $10 billion of bonds without including any 30-year debt, according to data compiled by Bloomberg.