Skip to content
Subscriber Only

Bond Investors Bound for Shock When Rates Surge, Cohen Says

Investors who poured more than half a trillion dollars into bond mutual funds since 2007 will experience a market crash when interest rates rise, according to Marilyn Cohen, a Los Angeles money manager.

Cohen lays out a grim scenario in “Surviving the Bond Bear Market” (John Wiley & Sons Inc., 224 pages, $39.95), co-written with husband Chris Malburg. Rates will surge if the global economy strengthens or because investors lose faith in governments with growing deficits, said Cohen, whose book came out this month. Standard & Poor’s this week put a “negative” outlook on U.S. credit, citing the risk that leaders will fail to curb debt.