‘Pretty incredible’ Changes in Bond Market Coming

Posted by Jeff Cox via CNBC

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Parse Janet Yellen’s comments any way you want, but know one thing: This is likely to be an interesting year for bond investors.

Financial markets last week took a jolt over comments from the Federal Reserve chair that traders immediately interpreted as the precursor for rate hikes that would come sooner than expected.

While there seemed to be just as many experts as not saying that the rate anxiety was justified, behind the scenes fixed income pros prepared for changes ahead.

“Investing in fixed income today is almost the exact opposite of what it was last year,” Rick Rieder, chief investment officer of megamoney manager BlackRock’s Fundamental Fixed Income group and co-head of Americas Fixed Income, said at a media briefing the day after Yellen’s remarks. BlackRock manages $4.3 trillion for clients.

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