There are about 28,000 bonds in the global aggregate index. That’s just investment grade bonds. Investors have tens of trillions of dollars of fixed income securities to choose from. It’s a big diverse marketplace which I think should form a significant part of people’s portfolios.

When it comes to the performance of global bonds, 2023 is proving to be a stronger year than 2022. This results from yields having risen substantially, producing greater running yields and less potential for further capital losses. We believe we could see stronger returns later in the year. Looking at the global investment grade benchmark that is hedged back to dollars, returns are still behind cash to this point, 2023, but some recovery could well occur before year end.

Read the article in Portfolio Adviser