This brings up one last question. If the weight of government securities will likely increase, is the U.S. Aggregate Bond Index still an appropriate benchmark for the fixed income market?
Absolutely! If you believe in , then what you want from your benchmark is the broadest representation of the investable market—in this case the investment-grade, taxable U.S. bond market. The U.S. Aggregate Bond Index serves that purpose well.
Percentage of U.S. Treasuries in the Bloomberg Barclays U.S. Aggregate Bond Index
This article has been republished with permission from Value Walk.