In an effort to attract investors, bond fund managers are buying debt that’s getting riskier by the minute.
FORTUNE — Wall Street is in the process of turning one of its most plain vanilla investments – and one that average investors have flocked to in recent years because of its perceived safety – into ticking time bombs. Unfortunately, no one should be all that surprised. Wall Street does this all the time.
The latest victim of Wall Street’s reverse alchemy: Bond funds. In the past year or so, managers of these funds have been loading up on debt that on average won’t be paid back until at least 2018, and in some cases much, much later.
Read more about why Bond Funds Are Ticking Time Bombs HERE. In it you’ll find all about:
- Wall Street’s high-yield gravy train might be running out of steam
- A boom time debt product is back with a vengeance
- Jim O’Neil: Mr. BRIC is bullish on China
…..all HERE
