Treasurys and high-quality corporate bonds remain the favorites, even with their already unexceptional — and in some cases unprofitable — yields.
Investors looking to buy corporate bonds must temper their expectations for 2013.
The "fiscal cliff" has investors speculating about higher taxes and their impact on the tax-friendly bonds preferred by high-income earners.
Saumil Parikh, MD & Senior Portfolio Manager, PIMCO sees a $200 billion fiscal tightening in the U.S. next year, which he says will be positive for bond markets.
Jamie Stuttard, Head of International Bond Portfolio Management, Pyramis Global Advisors says the upcoming fiscal cliff talks, and various European elections in 2013 will continue to dominate the bond markets.