Summary

• The Bloomberg US Aggregate Bond Index declined 0.05% during Q1 2026, driven lower in March by volatility associated with the Iran war after a strong start to the year.
• The entire Treasury yield curve pushed higher in Q1, with most of the shift taking place in March after combat operations began in the Middle East.
• Investment-grade corporate spread levels reached their lowest point in recent memory in late January before reversing course and pushing higher through the final two months of the quarter.
• The securitized sector delivered positive returns in Q1, bucking the trend of the other major sectors and rising 0.40%.
• Security selection in the corporate sector contributed to relative returns as the portfolio's allocation outpaced the benchmark during the quarter, though the impact was somewhat mitigated by a lower relative weight.

Market review and outlook

The Bloomberg US Aggregate Bond Index declined 0.05% during Q1 2026, driven lower in March by volatility associated with the Iran war after a strong start to the year. Through the first two months

50 Followers