Bond Sales by Households Keep Bond Prices Down: Q3 2005
During Q3 2005, U.S. households were sellers of corporate bonds on an unprecedented scale, probably in anticipation of a projected crash in the bond market as a result of much-publicized Federal Reserve interest rate hikes. (See: Federal Reserve Flow of Funds Table 212: Corporate and Foreign Bonds.) Over the decade 1995-2004, U.S. households bought corporate […]