With interest rates embarking on what will likely be a protracted rise, bond investors are braced for a bearish trend. They are taking for granted that returns will be bad, leaving just two important questions: how bad will returns be? And in which sectors will returns be the least bad?
Some phrase the first question differently, asking, “Is this 1994 all over again?” That was the worst bond year in memory, with 10-year Treasuries returning -8.29% by Merrill Lynch’s measure. Bonds hardly live