Global Fixed Income Blog
Fixed Income Perspectives
An appropriately diversified fixed income portfolio across core, core complements and extended sectors can help investors generate income, provide diversification to equities and lower overall portfolio volatility.
Extended sectors
Seek income and/or total return
Core complements
Seek reduced fixed income volatility
Core holdings
Seek lower volatility and diversification to equities
Get ahead of “what ifs” with Scenario Analysis
Fixed Income Perspectives
Every December, we publish our predictions for the year ahead. We believe these predictions have at least a 1-in-3 probability of materializing – making them realistic, while not necessarily our base case, and a surprise relative to investor positioning.
The Bloomberg US Aggregate Index (the Agg) has a long history and is solidly entrenched as a benchmark for bond performance. However, since launching in the mid 1980s, its rules-based construction has grown antiquated and no longer delivers the well-diversified portfolio many believe it to be. Instead of accepting passive strategies that follow this index, investors may prefer strategies deliberately designed for their desired outcome — active Core and Core Plus.
As Fed policy shifts, fixed income strategies need to manage changing correlations between risk assets and duration.
The Bloomberg US Aggregate Index (the Agg) has a long history and is solidly entrenched as a benchmark for bond performance. However, since launching in the mid 1980s, its rules-based construction has grown antiquated and no longer delivers the well-diversified portfolio many believe it to be. Instead of accepting passive strategies that follow this index, investors may prefer strategies deliberately designed for their desired outcome — active Core and Core Plus.
Rick Figuly, lead Portfolio Manager of the Core Bond Strategy, discusses the latest in bond investing, including the inflation and rates outlook, opportunities agency-backed securities and commercial real estate valuations.