Excess Returns · Thursday, September 10, 2026
Mike Contopilis and John Kirchner of Janice Henderson argue that most investors' bond portfolios haven't adapted to new market regimes, leading to underperformance. They highlight that traditional bond thinking, focused on long duration and coupon payments, was disrupted in 2022 and needs a rethink.
“The bond market changed a little bit. A couple of different regimes maybe even. And most investors, if we're looking at portfolios, they haven't changed their portfolios much to match.”
“And so bonds kind of have a dirty, you know, there's sort of a dirty word, right? And there's a negative connotation to them over the last three, four, five years.”
“But the fact of the matter is, what a lot of investors don't realize is that bonds come in many shapes and forms. And bonds don't necessarily mean you have to take a lot of interest rate risk.”