Fixed Income Returns Off To Bad Start In 2018

With U.S. yields on the rise in 2018, it should come as no surprise that much of the fixed income world has suffered on a return basis. The charts below compare current year-to-date returns to returns of previous years. The blue line in each chart denotes 2018 returns, while the gray lines show returns for previous years.

The Barclays Corporate Index is down 3.10% YTD, making 2018 the fourth worst year since the index began in 1974. Only 1984, 1994 and 1996 saw worst returns at this point in previous years.

The Barclays Financial Corporate Index is down 2.81% YTD. Only 1994 saw lower returns at this point in previous years.

The Barclays Baa Aggregate Index, the lowest level of investment grade, is down 3.17% YTD. Only 1994 and 1996 saw worst returns at this point in previous years.

The Barclays TIPS Index is down 0.79% YTD, making 2018 the third worst year on record. Only 2006 and 2013 posted bigger losses at this point in previous years.