Tough Start for Fixed Income
Despite a late-quarter rally, high-quality fixed income had a difficult start to 2018, but the ride over the remainder of the year could be smoother. The Bloomberg Barclays U.S. Aggregate Bond Index, a good representation of the broad high-quality bond market, returned -1.5% during the first quarter of 2018. This was the 14th worst quarter since the index’s inception in 1968. It could have been even worse, but the index rallied 0.5% during the last week of the quarter, offsetting some of the headwinds from earlier in the year.
Rising yields, and thus falling bond prices, have been the main cause of pain for... Read more