Bond funds load up on cash
from The Wall Street Journal
Large bond funds are holding the most cash since the financial crisis as portfolio managers brace for potential price swings and unruly trading ahead of an expected Federal Reserve rate increase in 2015. The top 10 U.S. bond funds by assets held an average 6.6 percent of their portfolios in cash at their latest reporting date, said fund tracker Morningstar Inc. That is double the sum they set aside last year and the most since 2007.
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