Fire and Brimstone! Human Sacrifice! Dogs and Cats Living Together! It’s the Long-duration Bond Apocalypse! And it’s not even the price decline which is the scariest part (that’d be the correlation). How might Risk Parity investors respond?
Poor returns, high volatility, minimal yield given the risk…why would anyone in 2022 want to include Extended Duration Bond funds in a portfolio? They are awful right now, no doubt about that, but nevertheless, extended duration bonds funds like EDV can play an important role in a RP portfolio.