Trading

Why the bond market is getting battered

Bonds, a staple in many portfolios, are facing a number of challenges

Equity and bond markets are in lockstep for the first time since 1994
Equity and bond markets are in lockstep for the first time since 1994 Photo: Getty Images

It’s a tough time to be a bond investor. Fixed income, which includes products such as bonds, certificates of deposits and debt-related mutual funds, has suffered one of its worst quarters in decades.

High inflation has pushed some investors away from bonds – seen as a hedge against bear equity markets – as it eats into fixed-income returns. In recent years, low interest rates have supported the investment philosophy that There Is No Alternative to equities, dubbed TINA.

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