Looking ahead with longer duration in bonds

[ "Blog: Latest Insights" ]
[ ]
[ "Edward Al-Hussainy" ]
  • Chart on the Go

Download PDF

Investors are watching for the end of rate hikes. Now may be a good time to revisit the income and total return potential of longer duration bonds.


  • Historically, bond underperformance reverses around the end of a hiking cycle. The gains are significantly more meaningful for longer duration bonds. Because the market response generally happens very quickly, it’s difficult for investors to time this transition.


  • Rather than trying to time the market, fixed-income investors should consider how longer duration bonds can support their income needs now — and their total return goals going forward.


Download as a client-approved PDF