Bonds - no pain, no gain

This issue seeks to put the small losses seen on shorter-dated high quality bonds in 2022 in a more positive light. Higher yields actually mean better longer-term returns for bond holders. In addition, steep yield curves in some markets provide the prospect - but no guarantee - of incremental 'roll down' returns. These small losses should be seen in the context of other longer-dated and lower quality bonds that have delivered materially worse outcomes in 2022.

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