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Monday, April 26, 2010

Fixed Income: One Long Round Trip Edition

A lot has happened since the summer of 2007, about the time when the word "subprime" entered mainstream culture (fun fact, it was the American Dialect Society's word of the year for 2007).

But, for all that's happened (bank failures, recession, credit freeze, unemployment spike, inflation and deflation concerns, quantitative easing, European sovereign risk, housing collapse, oil spike / freefall, etc...) the Treasury, Investment Grade Corporate, High Yield Corporate, and TIPS fixed income sectors (as measured by their BarCap benchmarks) have almost identical cumulative performance over that time frame.

Source: BarCap