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3 ways to position fixed income in uncertain markets

Our Blog Dec 14, 2016
Colin J. Lundgren, Global Head of Fixed Income

Three keys to help take the guesswork out of building resilient fixed-income portfolios

Many investors are asking how to position their bond investments in today’s uncertain environment. Here are three strategies to help fixed-income investors stay on the path to their goals:

1) Don't put all your eggs in a single part of the fixed-income basket. Fixed-income investors should own a very diversified portfolio.

2) Focus on high quality. While they may not pay the highest dividend or coupon, investment-grade corporate bonds can provide a stable source of return.

3) Take advantage of emerging market debt. We wouldn't paint all emerging market debt with a broad brush, but there are select opportunities in certain countries where we see improving fundamentals.

In today’s environment, stretching for yield could mean moving into areas of the corporate bond market or certain parts of the world that don’t provide adequate compensation for the risks. In this video, Colin explains why investors may be better off accepting a little less income in exchange for safety.

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Colin J. Lundgren

Colin J. Lundgren

Global Head of Fixed Income