There's Still Time to Act on the Opportunity in Fixed Income
Many bond investors have been awaiting the perfect “Goldilocks” moment to take advantage of yields before they fall. Based on data covering the past 30 years, we believe currently attractive yields are worth considering now.
Key takeaways
- From October 2022 through September 2024, bonds enjoyed stronger returns than money markets did. However, many bond investors remained on the front of the yield curve, waiting for the perfect time to jump in.
- By examining data from the past 30 years, we found that when the yield to worst for the Bloomberg U.S. Aggregate Bond Index exceeded 5%, the index’s go-forward 1-, 3-, and 5-year returns were positive a high percentage of the time.
- We believe this data indicates that taking advantage of attractive yields currently available is worth considering.
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