White paper

Jul. 19, 2019

The Bleak Future of Bonds

How Bond Risks Threaten Traditional Portfolio Construction

White Paper — Overview

For decades bonds have played a dual role in most investor portfolios: providing income and capital preservation.


Going forward, however, there are numerous risks working against treasuries, corporates, and high-yield bonds and collateral loan obligations that pose tremendous challenges to their traditional roles of income and capital preservation and their reputation of being safe investments.


With the fiscal outlook looking grim, advisors and investors may need to rethink their dependence on bonds for portfolio protection in the long run.


Marc Odo, CFA®, FRM®, CAIA, CIPM®, CFP®, Client Portfolio Manager, examines each these bonds risks and how they challenge the traditional portfolio.