Diversification vs De-Risking: Evidence across Asset Classes

Do bonds diversify or only de-risk?

Nicolas Rabener
10 min read
22 Jun 2026

SUMMARY

  • Diversification and de-risking are different concepts
  • Most assets de-risk rather than diversify
  • Especially when measured against T-Bills

INTRODUCTION

Cliff Asness of AQR Capital Management commented on X on June 7th, 2026, that “bonds, as they are conventionally used, dilute equities much more than they diversify equities” – a striking observation given that most investors think of bonds primarily as diversifiers.

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