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Bond review shows European underperformance

In 2014, European bonds were the biggest underperformers in both corporate and government bond segments, according to data from FE.
Looking at the bond category generally, corporate bonds performed better than government bonds for the one-year period ending 31 December 2014.
 

Index : Citi WorldBIG Corporate Index TR in US

3.1

Index : Citi World Government Bond Index TR in US

-0.48

 

Among corporate bonds, European bonds were the worst performing

Index : Citi USBIG Corporate Index TR in US

7.48

Index : Citi EuroBIG Corporate Index TR in US

-5

 

European bonds also had the poorest returns among government bonds

Index : Citi US Government Bond Index TR in US

4.92

Index : Citi Asian Government Bond Index TR in US

4.59

Index : Citi EMU Government Bond
 all maturities TR in US

-0.61

 

Lower grade bonds outperformed higher grade bonds

Index : Citi WorldBIG BBB TR in US

2.74

Index : Citi WorldBIG AAA/AA TR in US

0.35

 

Longer-term bonds outperformed shorter-term bonds

Index : Citi WorldBIG 10+ Years TR in US

9.97

Index : Citi WorldBIG 1-3 Years TR in US

-5.34

 

Against the US dollar, all major currencies underperformed in 2014. Funds invested in US dollar-denominated bonds should fare better than local currency bonds this year.

US Dollars in US

0

Hong Kong Dollars in US

-0.01

Indian Rupees in US

-2.01

Singapore Dollars in US

-4.72

New Zealand Dollars in US

-5.04

Pounds Sterling in US

-5.86

Malaysian Ringgit in US

-6.32

Australian Dollars in US

-8.53

South African Rand in US

-9.47

Swiss Francs in US

-10.5

Euros in US

-12.18

Japanese Yen in US

-12.34

 

Part of the Mark Allen Group.