For a supposedly boring investment, bonds have shown their capricious side lately. The bond bull market, widely thought to be sputtering out last year, has roared on in 2014. This year’s rally has left even the most seasoned fixed-income investors scratching their heads—and older investors in a challenging spot. Read the article here >>>
In this morning briefing on alternative investments in charitable plans, Kevin Noblet references Asset Dedication’s article that talks about how the three largest unconstrained bond funds haven’t kept up with the performance of the Barclays U.S. Aggregate Bond Index since the beginning of the year. Read the article here >>>
Unconstrained bond funds are being pitched as a way around rising rates but they don’t seem to be holding up their end of the bargain very well; maybe it’s time to look at individual bonds. Read the article here >>>
While it might be tempting to start finagling with fixed-income allocations as the next rising-interest-rate cycle draws nearer, proponents of bond ladders say the tried-and-true strategy works in all cycles if safety is your guide. Read the article here >>>
The rise in interest rates since the historic low in 2012 has many bond fund investors running for cover, much to the consternation of Pacific Investment Management Co.’s chief executive Bill Gross. And if one looks at rates over the long term, run they should! Read the article here >>>