Europe’s Bond Benchmarks Exposed [Chart]

Like other traditional bond benchmarks, key European investment grade bond indexes have changed dramatically over the last five years.

Benchmark duration—which measures interest-rate risk—has risen sharply. And bond yields have plummeted. Worse, benchmarks now include many negative-yielding bonds. As a result, investors tracking bond benchmarks are exposed to greater risk, just when compensation for that risk is lower than ever before.

Has including ESG become a necessity for investors?

Clint CarlsonESG (environmental, social, governance) has become a hot topic in recent years, especially lately with the debate over whether pension funds should be able to factor in ESG when choosing investments. At Morningstar's recent conference, the firm argued that ESG has become a requirement for long-term investors. Q2 2020 hedge fund letters, conferences and more Read More


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