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DewDiligence

06/28/13 10:15 AM

#163140 RE: bladerunner1717 #163139

The damage to the bond market can’t be fully undone by the Fed’s statements now because the confidence of retail investors in long-maturity bonds and bond funds has been shaken. As we’ve discussed on this board, many of these investors didn’t realize that bond prices and interest rates move in opposite directions and that bond funds were exposed to sudden losses in principal that could wipe out multiple years of income in one fell swoop.