The dilemma facing bond investors has grown starker since the start of 2020, as already record low bond yields have plunged further.
The pandemic has caused the market to revise sharply downwards its expectations for economic growth and inflation, creating the conditions which normally cause government bonds to perform strongly.
But with yields at record lows, and in some cases negative, can those assets continue to perform the safe haven role of old?
For advisers constructing a portfolio based on the principles of diversification and risk management, do government bonds continue to deserve a place among the holdings of a typical client?
How should investors view the implications of central banks' vast bond buying programmes.
Corporate bonds are typically more economically sensitive than government debt, so the prevailing market conditions ought to be negative for those assets.
But if companies are cancelling their dividends, does that leave more cash to pay the bond holder? And how will the low inflation environment help the corporate bond market?
This guide examines the outlook for corporate and government bonds, and the role of bonds in balanced portfolio.