May 2025
Our fixed income experts, Ken Orchard and Vincent Chung, provide valuable insights into the current investment landscape. They highlight the opportunity cost of remaining in cash, especially when bond yields are elevated, suggesting that fixed income can offer a stable income stream. Ken and Vincent emphasize a global multi-sector bond approach, which allows for diversification across various sectors, including government, corporate, and securitized debt, both in developed and emerging markets. This strategy is presented as a flexible solution that can adapt to market changes, offering potential for consistent income and risk mitigation.
Additionally, Ken and Vincent outline the benefits of a diversified income bond strategy, which aims to provide high yield-like returns with investment-grade risk levels. They leverage a broad fixed income universe, spanning multiple sectors and countries, to identify attractive opportunities and manage risks. The strategy's global nature avoids concentration in specific sectors or geographies, allowing for a diversified source of returns and income. Ken and Vincent suggest that this approach is well-suited to the current market environment, characterized by political uncertainty and fiscal challenges, and can help investors achieve stable returns and lower volatility through diversification.
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