According to a recent Bloomberg article, losses on longer-dated Treasuries are beginning to rival some of the most notorious market meltdowns in US history. In fact, bonds with a 30-year maturity are down 53% since March 2020 despite normally being associated with capital preservation! Since bond prices move inversely with interest rates, and since longer maturity bonds are more sensitive to rates, the impact on longer-term bonds has been particularly painful for investors of all stripes.
Because of higher interest rates, tighter lending standards, and higher operating costs, corporate bankruptcy filings have increased dramatically this year, and that trend will likely continue given the outlook for macroeconomic fundamentals. According to the American Bankruptcy Institute, 1,500 small businesses have already filed for bankruptcy this year while numerous notable larger companies, like Rite Aid
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