Most investors tend to be more familiar with the stock markets and shares. So, let’s talk about bonds today. Historically, bonds display lower volatility compared to stocks. In today’s volatile environment, bonds offer a safe instrument for passive income from their bond yields. With increasing interest rates, it is a good time to lock in the higher yields using investment grade bonds for longer periods. In addition to the high yields, there is the potential for capital gain when interest rate drops as bond price is inversely proportional to interest rates. 2022 was an extremely exceptional bad year for bonds. Looking at the Global Aggregate USD Bond’s returns, the bond dropped 13% in 2022 with Intra-year decline (lowest drawback) of 16%. This is exception as for most other years (16 out of 20 years), bond returns were positive with relatively lower fluctuations. This extraordinary event was a result of