Europe’s Bond Benchmarks Exposed - Context
by Fixed Income AllianceBernstein
Like other traditional bond benchmarks, key European investment grade bond indexes have changed dramatically over the last five years.
Benchmark duration—which measures interest-rate risk—has risen sharply. And bond yields have plummeted. Worse, benchmarks now include many negative-yielding bonds. As a result, investors tracking bond benchmarks are exposed to greater risk, just when compensation for that risk is lower than ever before.
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