Who wins from carnage in the credit markets?

THE FIRST rule of investment, according to Warren Buffett, is not to lose money. The second rule is not to forget the first. That is true for no one more than bond-fund managers, whose job is to shelter their clients’ money from volatility while eking out what returns they can. The bloodbath in bond markets so far this year—America’s have had their worst quarter since 2008, and Europe’s their biggest-ever peak-to-trough plunge—ought to be the ultimate nightmare for such timorous investors. Instead many are sighing in relief.