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A handful of giant investors have the fate of the bond market in their hands
The fate of the bond market lies with a handful of giant investors. The top five investment companies hold $264 billion in US high-yield bonds, according to a big report from Stephen Caprio and Matthew Mish at UBS. That's equivalent to 20% of the market. The top 20 hold $605 billion, equivalent to 46% of the US high-yield market, and mutual funds and separately managed accounts hold 70% of the market. That could be a problem, according to Caprio and Mish. The analysts explore what is called concentration risk in their report, and argue that having a high level of mutual fund ownership in the high yield market could ... (full story)