
Bogleheads On Investing Podcast Episode 90, Vanguard's Perryne Desai discusses fixed income concepts and investment strategy, Rick Ferri host
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Jan 22, 2026 Perryne Desai, Head of Index Fixed Income Product at Vanguard, dives into the world of bonds and fixed-income investing. She breaks down key concepts like bond structure, including principal and yield relationships. Desai discusses the advantages of ETFs, the significance of international bonds, and how Vanguard aims to meet diverse investor needs. She also highlights the upcoming corporate target-maturity ETFs and the benefits of municipal bonds. This insightful conversation is packed with nuggets for anyone looking to navigate the bond market.
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Bonds Are Loans Priced By Market Yields
- A bond is essentially a loan: you give principal now and receive coupons and principal back at maturity.
- Market price moves so the bond's yield aligns with current rates, causing price declines when rates rise.
Aggregate Index Omits TIPS And High Yield
- The U.S. taxable fixed-income market contains treasuries, mortgages, corporates, and more, making it complex.
- The aggregate bond index excludes TIPS and high yield, which increases its composition differences from broader bond sets.
Municipals Often Offer Steeper Yield Curves
- Municipal bonds are tax-exempt and often offer steeper yield curves than treasuries.
- That steeper muni curve can make longer-maturity munis attractive even at moderate tax rates.
