http://www.usatoday.com/story/money/markets/2014/08/16/what-happens-to-bonds-when-everyone-aims-to-sell/14071635/
"But if everyone is exiting bonds, and a lack of liquidity is sending
prices down even further, it may make for a good buying opportunity for
those who were already interested in buying. Similarly, for those
looking to sell, it may pay to do so before there's a run on the exits."
a bond is a form of loan or IOU...Bonds and stocks are both securities, but the major difference between the two is that (capital) stockholders have an equity
stake in the company (i.e. they are investors), whereas bondholders
have a creditor stake in the company (i.e. they are lenders). Being a
creditor, bondholders have absolute priority and will be repaid before
stockholders (who are owners) in the event of bankruptcy.
"Several times in the last six years, fear has pushed investors to rush for the exits out of municipal-bond mutual funds."
Municipal, or local government....meaning people are concerned about the safety of investments in local governments. Why?
Because of what happened to Detroit....
