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Uncle Pipeline’s Corner

Uncle Pipeline has been a Financial Pipeline contributor since 1996. An expert in investing in bonds to managing your personal finances, he’s the kindly uncle who is always there for you with great financial advice. Always opinionated but never boring, Uncle Pipeline’s insightful anecdotes and simple explanations will help you to make better decisions about your money. He’s like a stiff pull of hard liquor – a little hard to swallow, but remarkably warming and helpful in the end.

You can trust him to curate the financial news you need to know about.

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Bond Market Slump Is Now Hitting High-Yield Funds

Publication: Bloomberg
Junk-bond investors are getting nervous as the financial markets sell-off spreads. Investors pulled $5.4 billion of cash out of high-yield bond funds from Oct. 4 through Tuesday, JPMorgan Chase & Co wrote in a note Wednesday, citing Lipper data. [Read more]
Why you have to read this
Junk bonds are suffering a terrible week with rising rates and equity selloff. The big question that remains, is this just the start? Levels remain very tight but where are the defaults?

We Forget That the Financial Crisis Had a Trial Run

Publication: Bloomberg
September saw a spasm of retrospectives on the 10-year anniversary of the financial crisis. Lost in all of the hoopla was the 20-year anniversary of another collapse — that of hedge fund Long-Term Capital Management in September 1998. In many ways, that episode was a precursor to the next crisis. [Read more]
Why you have to read this
A tremendous story meant to be full of lessons for the future - lessons that were not followed in 2008. Will the next crisis unfold because we cannot learn from our mistakes?

Bond ETF Outflows Suggest No More ‘Crying Wolf’ on U.S. Rates

Publication: Bloomberg
Bond investors are running from anything that smells of interest-rate risk. Investors pulled billions of dollars from exchange-traded funds that track longer duration fixed-income plays, as Treasury yields resumed their upward march. [Read more]
Why you have to read this
It seems passive money is becoming much more active as ETFs are hemorrhaging outflows this week. The iShares Core US Aggregate Bond ETF saw its largest single day outflow in 15 years. With this much fear in the markets, the recent rise in rates may be here to stay…

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