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5 Key Factors That Drive Stock And Bond Returns

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What are the 5 key factors that drive stock and bond returns? Find out in this infographic. Want to learn more? Visit http://oaktreecp.com/

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5 Key Factors That Drive Stock And Bond Returns

  1. 1. 5 KEY FACTORS DRIVING STOCK & BOND RETURNS O A K T R E E C P . C O M EQUITY PREMIUM Stocks are considered riskier than bonds, but deliver higher returns over time SMALL-CAP PREMIUM VALUE PREMIUM TERM PREMIUM BORROWING COSTS Small company stocks return more than large company stocks Bonds with distant due dates have returned more than bonds that are due soon Companies with a lower ratio between stock price and metrics such as high earnings, sales or cash flow return more than growth companies or those with higher such ratios Bonds with low credit ratings have returned more than bonds with higher credit ratings Stock Bond RISK/RETURN STOCK $ SALES $ BOND CREDIT RATING RETURN BOND 1 BOND 2 BOND 3 AAA BBB AA+

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