Why we believe an active, flexible approach to fixed income may provide attractive income and improve resilience in portfolios.
The greatest risk investors face today is not unexpected shocks, but markets mispricing the expected ones. Geopolitical tensions, isolationist trade policies, and fiscal and central bank divergence are, in our view, underestimated.
These risks are hard to model and easy to overlook when near-term economic data still appear supportive – and when the range of plausible outcomes is widening faster than standard risk models can capture.
Fundamental shifts are redefining fixed income markets. Credit spreads are tight, long-maturity bonds are under pressure, and the traditional 60/40 portfolio is showing its flaws. At the same time, the build-out of AI infrastructure is reshaping credit markets.
How can fixed income investors position portfolios for resilience? This paper explores this question and more.
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