Fixed Income

Focus on Shorter-Duration Credit Exposure

May 17, 2019
For defensive positioning while still generating yield, we favor shorter-duration bonds in some sectors with credit risk.

Key Points

  • To implement relatively defensive positioning while still generating yield, we focus on areas with the potential to better withstand a resumption in volatility.
  • We favor allocations to shorter-duration bonds in some sectors with credit risk with structurally attractive risk/return profiles.
  • If the economy unexpectedly slides into recession, the short duration of our positions will limit exposure to credit risk.

Please read the transcript at your leisure.

All investments are subject to market risk, including the potential loss of principal. Fixed income securities are subject to credit risk, liquidity risk, call risk, and interest-rate risk. As interest rates rise, bond prices generally fall.  

201905-843750