Historically, investors believed that desired investment characteristics (diversification, liquidity, and lower volatility compared with equities) of their “core” fixed-income allocations would be adequately addressed by the domestic fixed-income markets. These assumptions may no longer hold true over extended periods of time for several reasons.
Investing involves risk, including the possible loss of principal. ● Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise bond prices generally fall.