The Risks of a Bad Year for the Bond Market

Gibson: I think about fixed income as part of a asset allocation process, where majority of us come to the table with an equity bias. We know mathematically that the return profile of equity is better than that of fixed income. And so I do think that the process of going from the starting point to the end point, we're going to have a lot of equity volatility. Gibson: The worst annual loss for a 10 year treasury investor was 5%. At least your bonds aren't going to blow up a interest rates rise.