Sara Devereux: Bonds Are Still Ballast

Today’s guest on The Long View is Sara Devereux. Sara is the Chief Investment Officer of Vanguard Capital Management and Global Head of Fixed Income. She oversees the investment professionals responsible for portfolio management, trading, and research for Vanguard’s internally managed fixed-income funds and ETFs, including actively managed bond and money market portfolios and bond index portfolios. Before joining Vanguard in 2019, Sara was a partner at Goldman Sachs, where she spent over 20 years in mortgage-backed securities and structured products trading and sales. Earlier in her career, she worked at HSBC, in risk management advisory and interest rate derivative structuring. She started her career as an actuary at AXA Equitable Life Insurance. Barron has named Sara to its annual list of the 100 Most Influential Women in US Finance every year since 2022.

Episode Highlights

00:00:00 Vanguard’s Investing Philosophy and New Innovations

00:06:20 Active Fixed-Income Strategy and the Alpha Waterfall

00:13:34 ETF’s Explosion, Active Management, and Private Credit Risk

00:23:10 How Technology Is Reshaping the Bond Market

00:29:51 Bond Market Performance 2025, Bonds as Ballasts, and Term Premiums

00:37:27 Bond Market Risks in 2026

00:42:51 Shifting Policy Crosswinds, Cracks in Credit, and AI Capex Risks

00:50:18 Technical Signals to Watch in 2026

Books Mentioned

Stay the Course: The Story of Vanguard and the Index Revolution

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