Investment grade bonds are issued by relatively strong companies with stable cash flows. And due to their place in a company’s capital structure, bonds are far lower risk than equities. However, it is not zero. The following graph shows corporate bond returns using the iBoxx Euro Liquid Corporates Total Return Index with currently around 40 components as an example. Returns have been positive but subject to some fluctuations over time.
iBoxx Euro Liquid Corporates Total Return Index
Source: VanEck, data for the period 1 January 2010 – 1 January 2021. Past performance is not a reliable indicator for future performance. You cannot directly invest in an index. Please see disclaimers at the end of the website.
Risk: Investors should consider risks before investing. See dedicated risk factors section on this website.