re: No love for bonds?

First off, I wouldn't take what UBS says with a lot of salt. Saying bonds are aggressive relative to equities is a pretty misinformed statement.

Every type of investment has it's risks, bonds are no different than equities right now. Rates have risen gradually back up recently, but I expect them to stay somewhat range bound for a while as long as we have easing policies.

You can still make money in bonds. High yield, short-term Spanish and Italian debt, bank loans, mezzanine finanancing, restructuring financing, non-agency mortgages, and several others are still attractive right now and have more room on the downside to go with rates. Even some investment grade bonds have some room for tightening. Also, don't expect rates to rise significantly in short-term space, there is still a big supply/demand mismatch for the next few years.

Treasuries are different, I wouldn't invest in Treasuries at all right now for several reasons. Really no upside outside of a high flight to quality. But to say bonds are "aggressive" and "have no future" is just not correct.