The Fed is unwinding quantitative easing. This should not have negative implications for bond yields or fixed income index investing. The Bloomberg Barclays U.S. Aggregate Bond Index is still an appropriate measure of the fixed income market.
Vanguard Fixed Income Group principal Josh Barrickman discusses how careful sampling, the use of a specialist model, and other techniques help his team’s bond-trading experts tightly tracking bond market indexes.
The refrain has been consistent from market pundits—rates are too low and have no place to go but up. First it was the end of quantitative easing that would be the undoing of the bond market; then it was the …