Active bond funds with the worst September returns signal deeper selloff risk
As seen on the 24/7 Wall St. homepage on September 29, 2026.
Balchunas is treating September's worst active bond funds as the early warning signal for a deeper rate-driven selloff, with forced selling at Pimco and Fidelity scale funds the real risk to bond holders.
Bond MF Canaries in the Rising Rate Coal Mine.. Here's a look at active bond funds with the worst Sept returns to keep an eye on. While big boy Pimco, Fidelity funds matter more in terms of exacerbating a deeper bond selloff, it is the little guys that we'll likely hear from https://t.co/ZV3gpVFEW4
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Bloomberg ETF analyst Eric Balchunas posted on September 29 flagging active bond mutual funds that logged the steepest losses in September as early warning signals of a broader, rate-driven bond market breakdown.
Balchunas argues that the smaller, less-watched funds are where investors will see trouble first, likely through redemption pressure and forced selling before the larger names make headlines.
The real systemic weight sits with institutional-scale funds at firms like Pimco and Fidelity. If those funds face sustained outflows in a rising-rate environment, the resulting selling pressure amplifies a bond selloff well beyond what the smaller funds alone would trigger.
Investors holding active bond funds, particularly those already showing September weakness, have reason to track redemption trends closely as rates remain elevated heading into the final quarter of 2026.