Higher bond yields don’t automatically translate to higher returns because yield is not free money, it is compensation for risk. Therefore, those constructing portfolios must understand the nuances of bond risk/return drivers and how bond market performance can be impacted by different macro scenarios. Forecasting the macro outlook is difficult at the best of times and perhaps near impossible in the current high VUCA environment. The silver lining is that fixed income offers lesser-known return sources that are independent of the macro outlook, which ...