What are the 5 key factors that drive stock and bond returns? Find out in this infographic. Want to learn more? Visit http://oaktreecp.com/

1. 5 KEY FACTORS
DRIVING STOCK &
BOND RETURNS
O A K T R E E C P . C O M
EQUITY PREMIUM
Stocks are considered
riskier than bonds, but
deliver higher returns
over time
SMALL-CAP PREMIUM
VALUE PREMIUM
TERM PREMIUM
BORROWING COSTS
Small company stocks
return more than large
company stocks
Bonds with distant due
dates have returned
more than bonds that
are due soon
Companies with a lower ratio
between stock price and metrics
such as high earnings, sales or
cash flow return more than
growth companies or those with
higher such ratios
Bonds with low credit ratings
have returned more than
bonds with higher credit
ratings
Stock
Bond
RISK/RETURN
STOCK $ SALES
$
BOND CREDIT RATING RETURN
BOND 1
BOND 2
BOND 3
AAA
BBB
AA+