Stuart Trow, Columnist

Bond Funds Are Not as Safe as You Thought

If your pension-savings strategy involves fixed-income products, you may want to reconsider.

February 20, 2024 at 5:00 AM UTC

Stuart Trow is co-host of “Money, Money, Money” on Switch Radio and author of “The Bluffer’s Guide to Economics.” Previously, he was a strategist at the European Bank for Reconstruction and Development.

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If you’re investing in bond funds for your pension, you’re probably doing it wrong. Don’t have to take my word for it; just consider the Bank of England. The Bank’s travails have highlighted the perils of bond investing, not just for personal investors, but also for the professionals.

Bond yields have risen sharply since MPC members revealed a three-way split on February 1st. Two voted for tighter policy, one to ease and the rest for interest rates to remain unchanged.