Well, 2023 was one of the most challenging years for fixed income investors with the converging challenges of combating inflation by governments around the world, regional wars, political instability, global warming and the impact and threat of economic recession all playing a role in determining what investors were looking for with respect to fixed income returns.

Despite a challenging first 9 months of the year, fixed income investors were rewarded for their patience in the final quarter of 2023, with the FTSE Universe Canada Bond Index gaining +8.27% for the quarter, bringing the YTD return to +6.69%. The rally in bond prices was remarkable in November (+4.29% for the month, the second largest monthly gain in over 20 years) and continued in December (+3.43%). There was outperformance in credit as well, helping further.