Investment Opportunities
Interest Rate History
Is the Bottom in Rates Finally Here?
10 Year Treasury Interest Rates
Managing the Next Interest Rate Cycle
Not many fixed income managers today were managing fixed income portfolios during the last bond bear market from the 1950's through the 1970's
Need a strategy that can potentially do well during the next bear market interest rate cycle
Past performance is not indicative of future results.
Lost Decades
| Years | 10 Year Treasuries Avg. Annual Return | Average Annual Inflation Rate | Average Annual Real Returns |
| 1950s | 0.78% | 2.05% | -1.27% |
| 1960s | 2.43% | 2.33% | 0.10% |
| 1970s | 5.41% | 7.06% | -1.65% |
| 1950s - 1970s | 2.86% | 3.79% | -0.93% |
Bond Bull Market
| Years | 10 Year Treasuries Avg. Annual Return | Average Annual Inflation Rate | Average Annual Real Returns |
| 1980s | 10.96% | 5.27% | 5.69% |
| 1990s | 5.85% | 2.93% | 2.92% |
| 2000s | 4.31% | 2.56% | 1.75% |
| 1980s - 2000s | 7.59% | 3.61% | 3.98% |
Source: Bloomberg
Past performance is not indicative of future results.
Impact of Rising Rates
The effect of a 1% rise in interest rates on U.S.Treasuries
Source: JP Morgan. *Data as of Change in bond price is calculated using both duration and convexity according to the following formula: New Price = (Price + (Price * -Duration * Change in Interest Rates))+(0.5 * Price * Convexity * (Change in Interest Rates)^2). Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
Past performance is not indicative of future results.
Treasury Bond Performance
Treasury Bonds typically do well when the economy is flat to declining but NOT when the economy is growing/accelerating
Negative Markets
Positive Markets
