In a safe economy, bonds have their roles that attract investors even though they offer lower returns compared with stocks or cryptocurrencies.
Bonds are one of the most reputable assets that have the lowest risk.
So, many investors including institutions consider having bonds in their portfolio. In investment, diversification is one of the most important principles based on legacy and proven by many investment cases.
So, even though bonds have relatively lower returns, they are still a most important asset in institutions' portfolios. And bonds offer predictable income as fixed interest payments. This predictability is very attractive, and institutions may prefer it even in good economic conditions.
And some institutional-grade investors like pension funds have their own mandates to keep a certain portion of fixed-income securities like bonds. This safe asset could support long-term responsibilities like pension payouts.
