High Quality, Long
Duration Bonds Perform Well When Times Get Tough Can we improve upon this portfolio construction?
Not exact matches
TIPS will typically outperform similar
duration Treasury
bonds when inflation is positive, and under -
perform T -
bonds during deflation.
Since longer - term interest rates are considered more representative of real estate financing costs, we compared how REITs with different lease
durations performed in periods of increasing 10 - year U.S. Treasury
Bond yields, based on month - end data.
TIPS will typically outperform similar
duration Treasury
bonds when inflation is positive, and under
perform Treasuries when inflation is negative (called deflation).
But with ETFs now available on every
duration and sector in the fixed income market, as well leveraged and inverse products, investors would be advised to at least understand the variety of
Bond ETF products and how they
perform in different interest rate and economic environments.
The Fund's investments in shorter
duration high - yield
bonds and floating - rate loans may help provide investor portfolios» a level of protection in a rising - rate environment, as investments in the Fund's universe have typically
performed with low correlation to traditional
bond markets.
The yield of the S&P / BGCantor 7 - 10 Year US Treasury
Bond Index is 36 basis points wider month - to - date, and long
duration indices have been
performing poorly as well, as seen by the maturity sub-indices of the broad S&P / BGCantor U.S. Treasury
Bond Index in the table below.