Aswath Damodaran
Data Update 3 for 2023: Interest Rates and Bond Returns in 2022
23:00
If 2022 was a bad year for stocks, and it was, it was an even worse year for bond investors. On US treasury bonds, a traditional safe investment, the rise in T.Bond rates translates into double digit drops in prices, with the ten-year T.Bond registering at -17.83% return, the worse year in the 1928-2022 time period that I track. With corporate bonds, the damage was worsened by rising default…