Eric Balchunas(@EricBalchunas):Keeping an eye on Active Bond MFs, which have trillions in assets and are vulnerable to rates going up. They live a charmed life, getting to play against the agg benchmark (The NY Jets of indexes) which helps them sidestep the passive takeover that is hollowing out active eq MFs. Their Achilles Heel tho is rates going up. Last time that happened it was big boy outflows. Watching $PIMIX and a few other giants for price declines triggering outflows, bc that means forced selling of bonds, which means rates go higher, which means NAV goes down, which means more outflows, you get the idea... Nothing to worry about yet, but worth watching.

2026.09.24 20:46

Keeping an eye on Active Bond MFs, which have trillions in assets and are vulnerable to rates going up. They live a charmed life, getting to play against the agg benchmark (The NY Jets of indexes) which helps them sidestep the passive takeover that is hollowing out active eq MFs. Their Achilles Heel tho is rates going up. Last time that happened it was big boy outflows. Watching $PIMIX and a few other giants for price declines triggering outflows, bc that means forced selling of bonds, which means rates go higher, which means NAV goes down, which means more outflows, you get the idea... Nothing to worry about yet, but worth watching.