Bonds and fixed income: Where’s the hedge?

IT IS no secret that 2022 has been a rough year for pretty much all asset classes across the board.

While US equities have fallen more than 20 per cent, the average fixed-income security has not fared much better: Most are down at least 10 per cent.

Of course, bonds and other fixed-income assets are supposed to offer diversification benefits and provide something of a cushion for when the equity component of a portfolio runs into rough times.