"When everybody gets back to their desks after the holiday we may see bonds suffer a little," he said.
Depending on the various reports, stocks or bonds could suffer, Mr. Koesterich cautioned.
In fact, in August, these high-yield bonds suffered their worst one-month decline on record, although there was no evidence of panic-selling.
But bonds suffered a setback as investors worried that a recovery would force the Fed to raise interest rates again.
If in an Isa, this should be paid tax-free, and bonds shouldn't suffer from the same volatility to capital values as equity funds.
True to the terms of the indenture set forth by its guarantors, that great bond will suffer no default.
Though stock prices recovered a bit, bonds suffered the biggest one-day drop in more than two months.
The 30-year bond, a bellwether for the more distant future, suffered some early selling.
The vast majority of the bondholders meekly went along and bonds of other emerging markets have not suffered.
The bonds of the affected countries, as well as their currencies - which can be volatile even in benign circumstances - suffered few ill effects, either.