Treasury yields are lower than pre-crash levels and will eventually normalize,
putting downward pressure on government bonds.
Corporate bond yields are comparable to pre-2008 levels and therefore corporate
bonds are somewhat less vulnerable to rate increases than Treasuries.
Intermediate-term bonds have performed better than short-term and long-term
bonds over the past 3 years, 1 year and year-to-date. If rates, rise intermediate-term
bonds should outperform long-term bonds.
Intermediate-term Treasuries out-performed intermediate-term corporates and
intermediate municipals over 3 years, but are down over 1 year, whereas corporates
and municipals are up.
High yield corporates under-performed investment grade corporates and municipals
over 3 years, but have out-performed year-to-date...
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are as of July 5, 2010. Our opinions and positions may change as subsequent
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for any particular purpose. We utilize information sources that we believe
to be reliable, but do not warrant the accuracy of those sources or our analysis.
Past performance is no guarantee of future performance, and there is no guarantee
that any forecast will come to pass. Do not rely solely on this material when
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involves risks of loss of capital. Consider seeking professional advice before
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