Market Charts

Coupon income has had an offsetting effect on negative price movements

06/03/2019

Market Chart - Years in which Bloomberg Barclays Agg had Negative Price Return

Since 1980, the Bloomberg Barclays U.S. Aggregate Index has had 18 years with a negative price return, yet only three of those years had a negative total return. This is due to the crucial offsetting effect that coupon income has had on negative price movements.

Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency).
Keep in mind that as interest rates rise, prices for bonds with fixed interest rates may fall. This may have an adverse effect on a fund’s portfolio.
Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. All these factors can subject the funds to increased loss of principal.

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