Fewer long-term bonds

Long-term fixed-rate bond issues may soon follow fixed-term mortgages into extinction, predicts A. Vincent Agnew, vice-president and senior portfolio manager for Chicago Title & Trust Company.

Mr. Agnew bases his prediction on the lackluster performance of long-term fixed-rate securities over the past three years and on the market's extreme vulnerability to swings over the past 12 months.

As a result, Chicago Title & Trust is advising its pension and trust customers to shorten maturities in their bond portfolios. This means unloading long-term fixed-rate bonds if and when interest rates come down and prices again adjust upward, Mr. Agnew says.