Use select charts from the Guide to the Markets to engage in portfolio discussions.
Download the Guide
Diversifying fixed income
Investing beyond traditional "core" U.S. investment grade bonds into core complement and extended sectors may provide benefits, regardless of the rate and inflationary environments.
Interest rates are near multi-decade lows, presenting new risks for investors focused on more traditional areas of the U.S. bond market
- The yield on the 10-year Treasury remains near its 30-year low, delivering investors minimal real returns after accounting for inflation.
- Despite recent volatility, interest rates are expected to gradually rise, presenting risks for investors heavily allocated to core bonds alone.