• Products
  • Insights
  • Practice Management
  • Resources
  • About Us

When bonds are trading at a discount (i.e., trading below their initial face value), investors are buying a bond for less while still receiving the face value at maturity, provided the bond matures at par1 and doesn’t default. This can offer an attractive total return for bond investors: the interest income plus price appreciation. Currently, the average price of a bond is sitting near its lowest point since the 1980s, providing a potential opportunity for bond investors.

 

Largest Bond Discount in Decades
Average Bond Price of the Bloomberg US Aggregate Bond Index

As of 3/31/26. Past performance does not guarantee future results. Indices are unmanaged and not available for direct investment. Bloomberg US Aggregate Bond Index is composed of securities that cover the US investment-grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. A bond is trading at a premium when the current price is higher than its face value. A bond is trading at a discount when the current price is less than its face value. Data Source: Bloomberg, 5/26.

To learn more about the opportunity in bonds, please talk to your financial professional. 

 

1 Par value is the price at which a bond was issued, also known as its face value. Par value is static, unlike market value, which fluctuates with credit ratings, time to maturity, and interest-rate fluctuations.

Important Risks: 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.

All information provided is for informational and educational purposes only and is not intended to provide investment, tax, accounting, or legal advice. As with all matters of an investment, tax, or legal nature, you should consult with a qualified tax or legal professional regarding your specific legal or tax situation, as applicable. The preceding is not intended to be a recommendation or advice. Tax laws and regulations are complex and subject to change.

CCWP156 5538043
Related Content

Financial Planning
Going Beyond the Will
Help surviving loved ones cope after you’re no longer here.
Investing for Income
When Stocks Stumble in Midterm Years, What Comes Next?
Although stocks often drop in midterm election years, they’ve historically rebounded sharply off the lows.
Investing for Growth
The Teenager’s Guide to a Comfortable Retirement
For young investors, a Roth IRA can be a useful tool for building long-term savings and working toward financial security.
Investing for Growth
Could International Markets Be Gaining Momentum?
As international stocks regain momentum, now may be an opportune moment to reevaluate equity allocations.
Investing for Income
The Power of a Diversified Bond Portfolio
How sector diversification has helped investors manage risk and enhance returns.
Investing for Retirement
Retirement Savings for Kids: Is a Trump Account or a Custodial IRA the Right Fit?
The greatest advantage your child has as an investor is time in the market.
Hartford Funds
Linkedin twitter facebook Instagram
Linkedin twitter facebook Instagram

The material on this site is for informational and educational purposes only. The material should not be considered tax or legal advice and is not to be relied on as a forecast. The material is also not a recommendation or advice regarding any particular security, strategy or product. Hartford Funds does not represent that any products or strategies discussed are appropriate for any particular investor so investors should seek their own professional advice before investing. Hartford Funds does not serve as a fiduciary. Content is current as of the publication date or date indicated, and may be superseded by subsequent market and economic conditions.

Investing involves risk, including the possible loss of principal. Investors should carefully consider a fund's investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund, or ETF summary prospectus and/or prospectus, which can be obtained from a financial professional and should be read carefully before investing.

Mutual funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA|SIPC. ETFs are distributed by ALPS Distributors, Inc. (ALPS). Advisory services may be provided by Hartford Funds Management Company, LLC (HFMC) or its wholly owned subsidiary, Lattice Strategies LLC (Lattice). Certain funds are sub-advised by Wellington Management Company LLP and/or Schroder Investment Management North America Inc (SIMNA). Schroder Investment Management North America Ltd. (SIMNA Ltd) serves as a secondary sub-adviser to certain funds. HFMC, Lattice, Wellington Management, SIMNA, and SIMNA Ltd. are all SEC registered investment advisers. The funds and other products referred to on this Site may be offered and sold only to persons in the United States and its territories.

Hartford Funds refers to HFD, Lattice, and HFMC, which are currently not affiliated with any sub-adviser or ALPS.

On June 3, 2026, The Hartford Insurance Group, Inc. (“The Hartford”) and Wellington announced that they had reached a definitive agreement under which Wellington Investment Advisors Holdings, LLP, Wellington’s corporate parent, will acquire Hartford Funds. Upon closing Hartford Funds will be integrated into Wellington’s U.S. Wealth business. The deal is expected to close in the first quarter of 2027, subject to regulatory and fund approvals. Upon closing, Hartford Funds would become an affiliate of Wellington. For more information, click here.

© Copyright 2026 Hartford Funds Management Group, Inc. All Rights Reserved. Not FDIC Insured | No Bank Guarantee | May Lose Value