Bonds are Better, Part 2! Expanded Allocation Strategies

January 1, 2009 — Over the last couple months market strategists, money managers and more recently the media have been highlighting the attractive yields and historically wide yield spreads over Treasuries that have been available in high-grade corporate bonds. Indeed, our most recent Special Report to clients in November titled “Bonds are Better”, highlighted the relative attractiveness of bonds, specifically high grade credit vs. stocks. In December corporate bonds realized some of this upside potential with corporate yields, based on the Barclays High-Grade Bond Index, falling from over 8.5% to 7.5%, netting investors a 6.5% total return for the month.