They want nothing to do with securities yielding one-half of one percent.
Savers are searching for yield and I don't know where they're going to get it.
* * * * * J B K * * * * *
San Francisco
Sales of floating-rate corporate bonds are fizzling, falling 68 percent from the start of the year, on growing expectations that central banks will refrain from raising borrowing costs anytime soon.
After more than $42 billion in the first two weeks of the year, sales of so-called floaters have fallen to $13.5 billion since Jan. 15, according to data compiled by Bloomberg. The debt has returned 0.41 percent this year, including reinvested interest, less than half the 0.99 percent of Barclays Capital's Global Credit Index.
"The market finally got its head around the fact that rates are going to stay low for a while," said Burt White, the chief investment officer at Boston-based LPL Financial Corp., which oversees about $250 billion. "Some people were really fantasizing that the Fed might raise rates in January, which was just ridiculous. That kind of takes a lot of the luster off floating rates."
http://www.bloomberg.com/apps/news?pid=20601087&sid=axkVCdMgxZ4k&pos=4
