IEMG - 2021 Outlook: Bond Investing In The Wake Of COVID-19

• A long history of extremely low yields in Japan suggests that low yields do not necessarily map to low returns.
• Amid the dramatic sell-off in risk assets in March 2020 as the global pandemic took hold, and again in September 2020 when equity markets pulled back sharply, government bonds served as one of the few true offsets to equity market volatility.
• Selective investments across regions and sectors, as well as a suitable balance of interest-rate-sensitive and credit-sensitive holdings, can help reduce volatility and increase return potential as the world economy recovers.

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