The 2017 Bond Strategy Backed By Goldman and BlackRock

The video discusses the changing perceptions of investors towards bond funds, highlighting a shift from long-duration bonds to shorter durations and strategic credit bets. It emphasizes the performance of unconstrained funds, which are not limited by geography, maturity, or credit quality, and compares their returns to traditional benchmarks. The discussion also covers the cost and potential benefits of active management over ETFs in a rising interest rate environment.

What was the key change in investment strategy discussed in the first section?

• Investing solely in emerging markets

• Focusing on geographic constraints

• Moving from short-duration to long-duration bonds

• Shifting from long-duration to short-duration funds

Which type of funds outperformed in 2016 according to the first section?

• Funds with high credit quality

• Funds constrained by geography

• Funds with strategic credit bets

• Funds with long-duration bonds

How did unconstrained funds perform compared to the Barclays AG?

• They matched the Barclays AG with a return of 2.1%

• They had a negative return

• They underperformed with a return of 1.5%

• They outperformed with a return of 5.15%

What is a key consideration when comparing unconstrained funds to ETFs?

• The fees associated with the investment

• The maturity of the bonds

• The geographic location of the fund

• The credit quality of the bonds

In a rising interest rate environment, what might be more beneficial according to the third section?

• Relying on passive management

• Investing in long-duration bonds

• Choosing active management despite higher costs

• Focusing on geographic constraints