An end to the party?

The good times have been rolling in the world of fixed income. But 15 consecutive months of outstanding returns have led market professionals to ask how long the boom can last. Ted Kim looks at the factors influencing the outlook for investors

For those in the fixed-income world, 2003 was a year of buoyant revenues, rising prices and record-breaking bonuses. Throughout the year, a familiar story was heard all over Wall Street: fixed-income divisions across the board had recorded historic revenue levels, boosting their firms’ EPS numbers—as well as share prices.

On the other side of the Street, 2003 was a period when the list of buy-side stars was completely rewritten, with traditional equity funds at Vanguard and Fidelity nearly