Ultra-Short Bonds: Attractive Performance During Rising Rates

Returns when the 10-year U.S. Treasury yield rose more than 100 basis points

Period 10-Year
U.S. Treasury1
BBg Barc U.S.
Aggregate Bond Index
Morningstar Ultra Short Bond Category
09/30/1993 - 11/30/1994 -8.9% -3.0% 2.1%
01/31/1996 - 08/31/1996 -6.0% -1.8% 2.7%
09/30/1998 - 01/31/2000 -7.7% -0.6% 4.3%
06/30/2005 - 06/30/2006 -5.8% -0.8% 3.3%
12/31/2008 - 12/31/2009 -9.9% 5.9% 7.2%
08/31/2010 - 03/31/2011 -6.1% -0.8% 0.9%
07/31/2012 - 12/31/2013 -6.2% -1.1% 0.8%
07/01/2016 - 12/31/2016 -7.5% -2.5% 0.6%

Sources: [1FTSE 10-Year Treasury Bond Index]. Past performance is not a reliable indicator or guarantee of future results. Performance during other time periods may have been different or negative. For illustrative purposes only and does not represent any specific portfolio managed by Lord Abbett or any particular investment.  Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.

This web page has been prepared exclusively for use by analysts, institutional investors and their consultants, registered investment advisors, broker-dealers, and sponsors of plans with a minimum of 100 participants. It is not intended for, and should not be shared with, small plan sponsors, plan participants, or the public.
 

ADDITIONAL INSIGHTS

Ultra-Short Bonds: A Source of Potential Income and Stability

Historically, floating-rate notes have generated positive returns despite rising rates, and they offer the potential for higher income going forward.