By Erin Bigley
Transcript:
With central banks anchoring official rates at historically low levels, investors are understandably concerned that today's low government bond yields will limit downside protection going forward. And they're worried that government bonds will have less room to rally during risk-off periods and that returns will be curtailed.
But the experience that we've seen over time shows that low or even negative yields don't eliminate that buffer that's provided by holding duration, or government bonds.
For example, during the most recent downturn in the first quarter of 2020, at a time