Mutual Fund Buzz for June 30: It's All About Bonds

The debt market’s moment continues.


Emerging market debt funds continue to get a lot of attention from both the industry and the media, as investors scurry to find safety from stock market volatility and the entrenched fiscal problems now surfacing in some pretty ugly ways throughout much of the developed world.

DoubleLine, the fast-growing fund house staffed by former TCW managers, is also teaming with Grail Advisors for a new actively managed emerging market debt ETF. The Grail DoubleLine Emerging Markets Fixed Income ETF will invest in dollar-denominated bonds across multiple countries and has the ability to trade a wide swath of corporates and derivatives. DoubleLine's other emerging market debt fund, DoubleLine Emerging Markets Income (DBLEX), got a recent nod from Kiplinger's Steven Goldberg as well.

Also, Rob Arnott tells IndexUniverse that he sees a "generational opportunity" in emerging market debt, though prices could get better from here.

Kiplinger: 7 Best Mutual Funds for This Market IndexUniverse: Arnott: 'Generational' Opportunity in Emerging Markets Debt

ETF Trends: For Its Next ETFs, Grail Enters Partnership With DoubleLine

[See DoubleLine's Jeffrey Gundlach on Life After TCW from U.S. News.]

And while we're on the subject of bonds, emerging markets might be worth a longer-term look for diversification, but what about plain old treasuries? Well, they're yielding nothing much right now and are well into their bull-market cycle. But that doesn't mean you shouldn't own them when the market looks this uncertain, according to Barron's Randall Forsyth, who says, "Over the next 10 years, I would rather own stocks of great American multinational companies that create wealth rather than the debt of the U.S. government, which absorbs wealth. Over the next 10 months, I'm not so sure."

Barron's: Revenge of the Bond Nerds

[See How to Plan For a Double-Dip Recession from U.S. News.]