Continuity in a time of change at Vanguard Fixed Income Group

Elvera Bartels

Earlier this year, Vanguard announced that Sara Devereux will become Global Head of Vanguard Fixed Income Group (FIG), effective July 1. Sara succeeds John Hollyer, who is stepping down after more than 30 years at Vanguard. In this interview, Sara, John, and Vanguard Chief Investment Officer Greg Davis discuss the current state of fixed income markets, Sara’s plans for FIG, and John’s extraordinary career at Vanguard.

What are the biggest challenges and opportunities for fixed income investors in the current environment?

Greg: The biggest challenge is that we’ve been in an environment of unbelievably low interest rates. Whether you are looking at money market funds, Treasuries, or even corporate bonds, yields are at historically low levels. That’s made it more difficult for investors to meet their yield targets they may have had without taking on more risk.

Investors need to be realistic and make sure they understand that they will

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