Bond Market Continued To Fall And Redemption Pressure Multiplied

Because of the recent decline, the net value of bond funds has also shrunk.

Data show that as of December 6th, the statistics of 720 pure debt funds, as many as 633 funds appear in the past week.

The average loss rate reached 0.67%, of which 118 of the week's net value shrank by more than 1%, and the net loss of the largest loss fund was 5.15%.

For fixed income products, this decline is indeed amazing.

The shrinking of performance has caused many fund companies to worry about potential debt redemption.

The head of a fund company's marketing department told reporters that although the large-scale redemption has not yet been seen, if the next bond market's trend is still lower than expected, the attitude of the institution may be reversed. This is a great pressure on the existing large scale debt base.

He believes that bond funds need to keep more positions as far as possible.

Otherwise, once passively selling bonds, it will cause unexpected harm to the bond market, fund performance or holders.

The continued decline in the bond market is reversing the anticipation of the "bull market" of the bond market. Many bond analysts' views on the bond market have also shifted from pre - buy buying to cash - holding. This has brought a lot of pressure to the rapid expansion of bond funds in recent years.

In addition to watching the net value shrink, bond fund managers also worry about potential "Redemption" brought about by the operational pressure.

A fund manager of a debt fund in Shanghai expressed with great concern to reporters that the agencies of the bond fund occupied a large proportion. If the expectation of the bond market was reversed, institutional investors, including insurance funds, could not be redeemed on a large scale, which could further impact the bond market which was already in a downward trend, forming a vicious circle.

For many bond fund managers, the recent fall in the bond market is really out of their expectation.

And this fast killing mode also makes it difficult for them to reduce their positions, which has become a big worry for many debt fund managers.

Despite public statements, many

The fund managers are optimistic about the market outlook, expressing confidence in the long term "slow" pattern of the bond market, but in private communication, pessimism is everywhere.

A pure debt fund manager told reporters that he had previously thought that under the background of "asset shortage", the continuous influx of off site funds would make every adjustment of bond market ushered in buying opportunities, but after the market had dropped sharply, the reliability of such a judgement had already been put on a big question mark.

"The key problem is that the leverage of the market is still too high, and some adjustment is easy to cause stampede.

On the other hand, we all feel vaguely that the attitude of the central bank has indeed changed, and that the expectations for further easing of liquidity need to be corrected.

The fund manager told reporters, "we sometimes joke that the bond market is out of order, and the stock market opportunities will be highlighted. If the fund contract can be agreed on the allocation of rights and interests positions, how nice!"

A private investment manager said frankly that bank financing funds were deeply involved in the bond market through outsourcing investment, leading to a strong consolidation in the bond market. The market has expressed concern about the high valuations.

Although the bond market has experienced a wave of decline, the risk of valuation has been released, but the market environment has changed. The fundamentals of supporting the bond market are likely to disappear. After a panic attack, investors' cautious wait-and-see sentiment will last for quite a long time.

Data show that 2016 is a year of large expansion of bond funds.

Up to December 7th, up to 346 debt bases were set up, with a scale of up to 538 billion 900 million, accounting for 40% of the total debt base.

The establishment of these new debt bases, when the bond market turns from "fast bull" to "slow bull", will become the heart of the fund company whether it is performance pressure or potential redemption pressure.

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