Emerging market bonds as a source of returns: stability in the portfolio, especially in 2024

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After the rally at the end of last year, bonds appear to have been exhausted as a source of returns. But they can still bring stability to the portfolio, especially in 2024. The fourth quarter of last year brought a big rally on the financial markets. While the yields on bonds from major issuers of corporate bonds were more than 3.8 percent at the beginning of October and those on ten-year federal bonds were just under 3 percent, they ended the year with yields of less than 3 and around 2 percent. Anyone who had missed the rally and was now hoping at the beginning of the year to find better entry opportunities given initially declining prices was disappointed. …

Nach der Rally zum Ende des Vorjahres scheinen Anleihen als Renditebringer ausgereizt zu sein. Stabilität ins Portfolio können sie aber immer noch bringen, besonders 2024. Das vierte Quartal des vergangenen Jahres brachte an den Finanzmärkten eine große Rally. Lagen die Renditen der Anleihen großer Emittenten von Unternehmensanleihen Anfang Oktober noch bei mehr als 3,8 Prozent und die der zehnjährigen Bundesanleihe bei knapp 3 Prozent, so beendeten diese das Jahr mit Renditen von weniger als 3 und rund 2 Prozent. Wer die Rally verpasst hatte und nun zu Jahresbeginn hoffte, angesichts zunächst rückläufiger Kurse bessere Einstiegsmöglichkeiten zu finden, sah sich getäuscht. …
After the rally at the end of last year, bonds appear to have been exhausted as a source of returns. But they can still bring stability to the portfolio, especially in 2024. The fourth quarter of last year brought a big rally on the financial markets. While the yields on bonds from major issuers of corporate bonds were more than 3.8 percent at the beginning of October and those on ten-year federal bonds were just under 3 percent, they ended the year with yields of less than 3 and around 2 percent. Anyone who had missed the rally and was now hoping at the beginning of the year to find better entry opportunities given initially declining prices was disappointed. …

Emerging market bonds as a source of returns: stability in the portfolio, especially in 2024

After the rally at the end of last year, bonds appear to have been exhausted as a source of returns. But they can still bring stability to the portfolio, especially in 2024.

The fourth quarter of last year brought a major rally in the financial markets. While the yields on bonds from major issuers of corporate bonds were more than 3.8 percent at the beginning of October and those on ten-year federal bonds were just under 3 percent, they ended the year with yields of less than 3 and around 2 percent.

Anyone who had missed the rally and was now hoping at the beginning of the year to find better entry opportunities given initially declining prices was disappointed. Or just waited too long. Others were faster and brought the rise in yields of the first few weeks to a quick end.

According to a report by www.faz.net,

The rally in bonds in the fourth quarter of last year signals a stable asset market, with yields falling significantly at the end of the year. This development shows that bonds can continue to provide stability in the portfolio, even in 2024. The decline in yields in the last quarter makes it clear that bonds could continue to generate attractive returns for investors in the future, especially in emerging market bonds and bonds from India. This development could lead to investors investing more in this asset class, which could potentially have a positive impact on the market and the industry. It can therefore be assumed that bonds will continue to play an important role in investors' portfolios in the future.

Read the source article at www.faz.net

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