Is the bond bubble ready to burst? Well, that depends on whether it ever existed in the first place.

Bonds, the traditional safe harbor, have enjoyed a helluva run amid one of the worst bear markets in history. During the last three years, a ton of cash has poured into fixed-income vehicles such as bond funds, which have capitalized on the fear generated by a precipitous decline in stocks. Assets under management in bond funds have increased 51% from $792 million in March 2000 to $1.2 trillion at the end of February, according to the Investment Company Institute.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.