The rising interest rate environment is a concern for bond investors with exposure to long-dated bonds, but the impact of rising rates on an investor’s portfolio really depends on the alignment between the duration of their bond exposures and their investment horizon.
Why it would take considerably more inflation to diminish the diversifying power of bonds in a balanced portfolio.
Vanguard's latest quarterly active fixed income perspectives newsletter summarises global economic and bond market news and discusses how managers are positioning our active bond funds.
With interest rate rises expected over the coming year, some investors are worried about holding long-dated bonds in their portfolio, which are more sensitive to rate changes. Mohneet Dhir, multi-asset product specialist, explains how LifeStrategy funds are positioned in the context of duration risk.
Even with tighter spreads at the intersection of the investment-grade and high-yield markets, Vanguard’s active fixed income team sees some attractive segments and relative-value plays.
Some investors are worried about the effectiveness of traditional multi-asset portfolios in a rising yield environment. Find out why our research gives us confidence that the classic 60/40 model retains its position at the heart of investor portfolios.