Data Update 3 for 2023: Interest Rates and Bond Returns in 2022

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 spreads, especially at lower ratings classes. Overall, 2022 was the first year in the 95 years of annual returns, where both stocks and bonds had double digit negative returns. The rising cost of corporate debt, combined with a rising cost of equity, pushed up the costs of capital for companies significantly, with consequences for investing, financing and dividend decisions. Looking forward to 2023, it will not be the Fed that drives interest rates, but what happens to inflation and the economy.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/blog/DataUpdate3for2023.pdf
Blog Post: https://aswathdamodaran.blogspot.com/2023/01/data-update-3-for-2023-inflation-and.html

Видео Data Update 3 for 2023: Interest Rates and Bond Returns in 2022 канала Aswath Damodaran