CIO Viewpoint - '009 Bonds: Shaken but not stirred...yet

It is a cliched denouement. A struggle ensues; the hero gets shot, the hero appears to be dead. But lo and behold, he is saved by an intervening force that takes the blow instead. He lives, he stands, and this to rapturous applause and relief. In 2009, investors felt similar exuberance when they were woken from their anxieties by extraordinary fiscal stimuli, having survived the blows of the credit crisis. Investors were stunned, but were still breathing. The real hit, of course, was taken by the biggest ‘hero’ of them all, the bond market. A year of gains The rally of 2009, one of the...