As we enter the home stretch of 2021, we are struck by the notion that economic conditions might actually make fixed income interesting again! Coming from a market practitioner, this sentiment is a bit tongue-in-cheek …
We began last quarter’s commentary by discussing the historical context that put the first quarter performance in the history books as one of the most negative quarters for total return on record given the violent interest rate move.
The start to 2021 was among the worst for the broad bond market, and its constituent sectors, in quite a long while. To put this in historical perspective, first quarter 2021 was the 4th worst total return for the Bloomberg Barclay’s Aggregate since …
A we put 2020 firmly in the rear-view mirror, we simultaneously contemplate the state of fixed income markets as we head into 2021. We spent much of our commentary budget last year discussing the massive dislocation and subsequent recovery in fixed income markets while also viewing these from a historical perspective.
The final stanza of 2020 is upon us, and the fixed income landscape looks quite complacent across many sectors of the market. Treasury rates are somewhat of an exception, as the re-steepening of the treasury curve is pronounced …