The Top 10 Reasons to Like Bonds Now
We believe the best way to add value is through relative positioning in sector allocations, individual security selection and along the yield curve, holding duration neutral overall. That approach, however, does not prevent us from having views on interest rates and we think bonds offer good value at current rate levels.
So Long Tina, Hello Patty: Baird Advisors Bond Market Outlook
The era of “TINA”—short for “there is no alternative” and describing a phenomenon where bond yields were so low that many investors felt they had no choice but to invest in stocks, even at stretched valuations—has given way to a market where they can “pay attention to the yield(s).” Or “PATTY,” for short.
Resiliency Through Uncertainty: Staying with Municipals
Different investors will choose different paths in response to the challenge of low rates and high credit uncertainty. Some may want to fight the trend by taking on more risk to achieve a target level of income or return.
In Cyclical/Secular Tug of War, Bond Investors Could Still Find Opportunities
Bond holders can still find opportunities amid the tug of war between strengthening cyclical forces that usually produce inflation and powerful long-term trends—an aging population, technology’s impact on labor and the overhang of significant government debt—that are preventing the economy from overheating.