Cash Returns Rival Bonds Now and Over Decade on Rate-Cut Delays
- Investors debate when to move out of cash and into bonds
- Incentive is low to take credit, rate risks, fund manager says
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The bond market’s losses since 2021 have been so severe that they all but wiped out any extra gains over cash over the past decade.
The Bloomberg US Aggregate Index, which includes Treasuries and investment-grade corporate debt, returned 15% to investors in the 10 years through February, compared with 14% in Treasury bills, the equivalent of cash.