Bonds

Investors needed bonds, not alternatives, in 2018

In this image, a broker at the New York Stock Exchange stands with a telephone in front of screens.
Photo: Bryan R. Smith/AFP/Getty Images

Asset managers have been moving away from fixed income and towards alternatives in recent years, looking to generate higher returns. But in 2018 the best performing portfolios were those that did just the opposite, a survey released today from investment bank Natixis found.

What it means: The top-performing quartile of portfolios had a much higher allocation to bonds than the bottom quartile and about half the alternative allocation.

A very important yield curve hasn't inverted

Data: Federal Reserve Bank of St. Louis. Two-year, Three-month; Chart: Andrew Witherspoon/Axios