Chart of the Week: Fixed Income Annualized Returns Over the Past 18 Years

Chart of the Week | August 09, 2021
Macro Insights

Fixed Income Annualized Returns Over the Past 18 Years

• Over the past 18 years floating rate loans, investment grade corporate bonds (Aaa), high yield bonds, and convertible bonds all outpaced the Bloomberg Barclays US Aggregate TR Index.
• With a Covid-19 induced boost, convertible bonds lead the way, outpacing high yield bonds by almost 300 bps.
• With inflation looming, the economy recovering, and corporate issuances plateauing, convertible bonds, investment grade corporate bonds, high yield bonds, and floating rate loans remain well positioned to outperform.