Making Sense of an Increasingly Tight Market for Bonds
Where Morningstar Medalists are finding value.
The first seven months of the year have been moderately generous to investors in intermediate-term bond funds. The Bloomberg Barclays U.S. Aggregate Bond Index returned a solid 2.3% from Jan. 1 through July 31, close to its gain for all of 2016.
Meanwhile, many funds that take a more adventurous approach to risk than the investment-grade index posted even better returns, thanks to gains in emerging-markets debt--peso-denominated Mexican debt was a particular standout--and junk bonds.
Sarah Bush has a position in the following securities mentioned above: PTTRX. Find out about Morningstar’s editorial policies.