For investors, since mid-August the U.S. 10-Year Treasury Bond YieldIt hit the highest level since the end of 2007, and the yield rate exceeded 4.3%. At this time, on the one hand, the allocation of bonds can obtain higher interest income; Compared with the stock market, the volatility of bonds is relatively small, and investors can grasp the current opportunities of high yields and low prices.
■ Extended reading:Check out the complete fund features of the 5 “Monthly Dividend Funds” in the market here!
In addition, as of 8/22, the Bank of America Merrill Lynch U.S. investment grade bond index yield rose to 5.91%, which is the highest level since the financial tsunami in 2008. According to statistics, since 2000, if investors invest more than 5% The average return on U.S. investment-grade bonds held for 1, 2, and 3 years is 8.1%, 15.9%, and 24.5%, which is significantly better than the average returns of 5.8%, 12%, and 18.4 in any one month. The market is relatively favorable (backtested by the Bank of America Merrill Lynch US Investment Grade Bond Index).
(Image source: Why are investment-grade corporate bonds worth investing in?)
Compared with the stock market, because the yield rate has been at a high level since 16 years, and the interest rate has an inverse relationship with bond prices, the current bond price is still at a low level. At this time, bond yields are quite attractive to fixed-income investors. , and under the protection of high yields, it has the cost to face price fluctuations. Entering the market at this time can obtain higher returns on the one hand, and on the other hand, if the interest rate of the Federal Reserve starts to shift, there will also be opportunities for capital gains. In terms of bond target selection, it is recommended that ordinary investors can choose investment grades with a credit rating of BBB or above Corporate bonds have better financial health and are more resistant to headwinds in the future market.
■ Extended reading:What indicators should be paid attention to in bond investment? What is the relationship between credit rating and default rate?
2023-09-01 07:42:27
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