April 7, 2020

Coronavirus Takes Over, Bond Funds Do Not Escape Unscathed

by Pat Keon, CFA.

In a quarter like no other (except maybe for the next one) COVID-19 laid waste to the investment landscape. As the U.S. was forced to shut down a large percentage of its economy to combat the spread of the virus, the damage was widespread. Equity markets quickly entered bear-market territory (a 20% price decline since the recent high), as demand for safe-haven assets increased, the Treasury yield curve rates retreated over 100 basis points (bps) at all maturities, new unemployment claims shattered the old record in back-to-back weeks, and the fixed-income fund universe felt the impact at both the performance and fund-flows levels.

Summary:

  • Government/Treasury funds (+2.24%) were led higher by the General U.S. Treasury Funds (+13.45%) and General U.S. Government Funds (+6.78%) groups.
  • General domestic taxable fixed income funds retreated 10.57% for the quarter dragged down by the below investment-grade debt peer groups.
  • World Fixed Income Funds (-10.55%) were hurt by the emerging markets peer groups, as they hold riskier assets.
  • Muni debt funds were off 1.67% for the quarter, as the national muni peer groups (-2.32%) underperformed the single-state muni (-1.03%) classifications.
  • Investment-grade corporate bond funds fell 1.26% during Q1. Corporate Debt Funds BBB-Rated suffered the largest loss at -3.24%.

Click here or the Download Full Report link in the upper right hand column of this page to download the First Quarter 2020 FundMarket Insight Report: Coronavirus Takes Over, Bond Funds Do Not Escape Unscathed

Get In Touch

Subscribe

Related Reports

August was another positive month for the European ETF industry since promoters enjoyed ...

I think we can agree that it’s been rather an eventful year so far. “Unprecedented” ...

Convertible Securities (CV) Funds, an often-ignored classification in the mixed-assets ...

Looking at the actions taken by fund managers and promoters in Europe, it seems like ...

We have updated our Privacy Statement. Before you continue, please read our new Privacy Statement and familiarize yourself with the terms.×