BlackRock's Rick Rieder expects the bond market to focus more on alpha creation next year, but investors should watch for rising duration risk as well as ongoing troubles in Europe.
The European Central Bank has helped soothe short-term sovereign debt worries in Europe, but long-term competiveness must be improved for the crisis to fully fade away, says Morningstar's Dave Sekera.
Concerns over Greek government turmoil, Italian debt, the ECB's mandate, and the sturdiness of the EFSF are complicating plans for a bailout, says Morningstar markets editor Jeremy Glaser.