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The Bond Bear Market Has Begun


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The Bond Bear Market Has Begun

(New York)

Everyone knows it has not been a good year for bonds, especially Treasuries and long-dated bonds. However, did you know that it is July and the bond market is on pace for its worst annual performance in a century? (yes you read that correctly). Global bonds are on pace for an annualized loss of 3.5%. So the question is how can one keep money in the market, but not get hammered. The answer is high-grade, short-term bond funds. Floating rate corporate loans and high-yield municipals seem like good areas of focus. Remember that shorter duration bonds are less susceptible to interest rate risk, which makes them safer as the Fed raises rates.

FINSUM : These picks seem spot on to us. Higher-yielding, shorter duration, and floating rates all appear to be good selections for the current environment.

  • bonds
  • bear market
  • rates
  • yields
  • municipals

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Bonds


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