Bond Return Simulator

Eric Crittenden, CIO of Standpoint, walks through how to use a bond return simulator created by Standpoint. The model allows the user to simulate future bond returns based on current interest rate expectations and shows the likelihood of bond returns outpacing inflation and fees.

Key Takeways

  • Our research shows that the current interest rate is an accurate predictor of future bond returns.
  • The simulator shows that there is a greater than 85% chance that government bonds will return less than 2% over the next 10 years.
  • On the "Forecast" tab you can adjust the inflation and advisory fee assumptions and view individual future scenarios.
  • On the "Cumulative Probability" tab you can see the distribution of potential outcomes.
  • Source: Standpoint Asset Management, LLC

Important Disclosures

Standpoint Asset Management, LLC (Standpoint) does not endorse and is not responsible or liable for any content, advertising, products, services, or information on or available from third-party websites or materials. Standpoint may use content on this website that has been supplied by companies that are not affiliated with Standpoint (third-party data). Any third-party data contained on Standpoint’s website has been obtained from sources believed to be reliable, but the accuracy or completeness of the information cannot be guaranteed.