Treasury Inflation-Protected Securities are posting the biggest losses since Lehman Brothers Holdings Inc. collapsed in 2008 as investors say they’re too expensive when consumer prices are barely rising. Blackrock Inc., Pacific Investment Management Co. and FAF Advisors Inc., which oversee about $4.5 trillion, are selling TIPS, contributing to a 1.1 percent loss this month after they gained 1.5 percent in January and 10 percent in 2009. The bonds are on pace for their worst month since falling 8.47 percent in October 2008, the month after Lehman went bankrupt. Investors who were piling into TIPS as recently as four months ago on concern that a recovering economy and $8.2 trillion of U.S. stimulus spending would ignite inflation are reversing course. They see little need to protect against price increases as the dollar rallies, banks restrict credit and expanding government deficits around the world threaten to slow global growth.
TIPS Drive Away Biggest Bond Bulls Seeing Inflation
Most Popular Articles
Latest Articles
Rocket delivers $291M profit amid improved margins and MSR acquisitions
The Detroit-based lender reported a GAAP net income of $291 million from January to March, its highest profit level in two years.