The start of the year was a wild ride for fixed income investors, as macro volatility coupled with rising Treasury rates has led to negative returns across nearly every asset class. Emerging markets fixed income has fared the worst, down roughly 10% to 15% due to rising geopolitical tensions and the sector’s longer duration. Returns for high yield (HY) corporate bonds and investment grade (IG) securitized credit, which exhibit relatively shorter durations, were negative in the mid-single digits and outperformed longer-duration IG corporate bonds. Government-backed bonds, including Treasuries and Agency MBS, did little to diminish the effects of broader macro volatility and were down roughly 8%. Floating-rate bonds such as bank loans and CLOs provided somewhat of a reprieve for investors, as these sectors were roughly flat to slightly positive. The Bloomberg US Aggregate Bond Index returned negative 9.5% through April, its worst start to the year going back to 1976.