Focus on Shorter-Duration Credit ExposureMay 17, 2019
- 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.
- Learn more about T. Rowe Price's Total Return Fund (PTTFX).