Source: BlackRock and Bloomberg. Yields on 1-3 year Credit bonds using the yield to worst on the Barclays 1-3 yr Credit Bond Index from June 2004 to June 2006. Inflation represented by the year-over-year change in the Consumer Price Index (All Urban Consumers). For illustrative purposes only. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
In my next Blog post I will discuss another potential strategy for positioning for rising inflation, inflation-linked bonds (ILBs).
1Effective duration as of July 1, 2014
Matt Tucker, CFA, is the iShares Head of Fixed Income Strategy and a regular contributor to The Blog. You can find more of his posts here.