I don't think so. Bond prices are like 2000 bubble.. They can keep on correcting. Trillions have piled on to it. Anything that is producing 7, 10 and 12% has serious risks tied to it.
It is not foreign money! Retail investors panic mode. Trading is become a side hobby for lot of people in China.
It is a leveraged fund. That is a known fact. If the interest rate expense goes up, the dividends will have to come down. But it also be doing things like Madoff !
If this is such a incredible why massive massive dumping and no comment or whatsoever from PIMCO ? I think it will reverse coarse again head back towards 7.. Anyway I sold it for a loss in 10s. I
As I have said earlier, you are weak or poor or chicken short! You are only shorting for 0.10c or 0.20c. and wasting time. If you believed so much that is over valued you should stay short until it drops under $8 closer to its NAV. You should be shorting volatile stocks to maximize your gains..
Point is as of today, you have lost 3 years of dividends already. Now your money has to work for free to recover if you bought in 12s or 13s. I am losing money even after dividends, I am going sell out of it. IMHO this drop is definitely has to do something with Greece and there may be losses albeit small but may lead to small dividend cut.. or May be a big dividend cut is coming soon...
Hard to say. I am actually losing money even after the dividends. All fixed income type investments are going to through severe correction.
Problems is losses when interest rates are jumping in a hurry! Which is what is happening now. 10yr will easily hit 2.5%