Everyone knows U.S. interest rates are low and below historical long-term averages.
But one Vanguard expert says that—keeping in mind the double-digit rates of the '70s and early-'80s, it's "somewhat astonishing that the yields on a broadly diversified basket of high-quality bonds (whether Treasury, corporate, or municipal securities) are often now below 2 percent or 3 percent.
Given the rise in prices for food, health care and other select goods and services, such an environment can rightfully be thought of as 'financial repression,' said, Ken Volpert, head of Vanguard's Taxable Bond Group, in an outlook report released last week.
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Janet Levaux
Janet Levaux, MA/MBA, is Editor in Chief of ThinkAdvisor & Investment Advisor. She's covered the financial markets since 1991 and advisors since 2005. Janet studied at Yale, Johns Hopkins SAIS and St. Mary's College of California. She's also lived and worked in Asia, Europe and Latin America, raised two sons, and won a Neal Award for top news coverage in 2020.
