- Unconstrained bond funds promise gains in any rate environment
- $21 billion in redemptions show investors aren’t convinced yet
The 2017 Bond Strategy Backed By Goldman and BlackRock
For the world’s biggest bond managers, 2017 might just be the year that unconstrained funds finally live up to the hype.
Although the bond funds — long marketed for their potential to shine in any environment — have failed to deliver consistently over the years, bond managers are convinced they’re about to have something of a moment. Donald Trump’s election has reignited the prospects for inflation and growth both in the U.S. and abroad, which will likely lead to higher interest rates and spell the end of the bond market’s three-decade bull run.