2021 marked the beginning of what could become the worst bond bear market in 50 years. The Bloomberg Barclay’s Aggregate Bond Index, representing $26 trillion in market value, generated a loss of -1.5%. When combined with the loss of purchasing power from inflation, the results are even worse. The CPI inflation rate for 2021 was 7.0%. Combining the loss in the bond index with the loss from inflation, the purchasing power loss, or real return, from an investment in the Aggregate Index was -7.9% in 2021*.
Convertible Bond 2022 Review and 2023 Outlook
The S&P 500 Index, along with most other market indices, rose during the first day