To The Moon

Higher-yielding bonds carry higher volatility and should be sized according to your goals and time horizon, and with a clear understanding of what determines their performance. yields (= government bond yields) could rise further, and a longer dated government bond-heavy allocation may be more vulnerable to “rate risk”. If your bond allocation is concentrated in developed market (DM) government bonds, it may be worth looking beyond traditional index-like exposures (40%–50% of which, by market value of outstanding debt, are made up of government bonds) into active management. Diversification spreads a bond allocation across different return drivers, and emerging market (EM) bonds are one part of that wider opportunity set worth a fresh look. Bonds have been in the spotlight in recent weeks,

Higher-yielding bonds carry higher volatility and should be sized according to your goals and time horizon, and with a clear understanding of what determines their performance. yields (= government bond yields) could rise further, and a longer dated government bond-heavy allocation may be more vulnerable to “rate risk”. If your bond allocation is concentrated in developed market (DM) government bonds, it may be worth looking beyond traditional index-like exposures (40%–50% of which, by market value of outstanding debt, are made up of government bonds) into active management. Diversification spreads a bond allocation across different return drivers, and emerging market (EM) bonds are one part of that wider opportunity set worth a fresh look. Bonds have been in the spotlight in recent weeks,