Now that yields have reset higher, bonds are positioned to protect portfolios while delivering higher income.
Floating-rate income and the secured nature of senior loans may provide a valuable defense against both rising rates and higher default risk for investors able to stomach short-term volatility.
Adding durable, low-cost external leverage to lower-volatility assets via the FHLB system can be an attractive way to enhance risk-adjusted return potential versus owning higher-volatility assets with more embedded leverage directly on insuranc
EM Corporates could be a valuable source of total return, carry, and diversification.
We continue to believe that inflation will prove to be a cyclical phenomenon, not a structural risk.
Enjoy today’s cyclical bounce, prepare for tomorrow’s structural risk.
While the world has cheered news of a vaccine on the horizon, it will not be available in time to help fight the recent surge in new cases of the virus.
Going forward, being nimble and remaining selective will be critical to identifying attractive new opportunities.
There are still opportunities to prepare portfolios today for the low-yield world ahead—we see the most value in select areas of the CMBS market.
Risk across the entire commercial mortgage-backed securities market is being viewed through the narrow lens of two troubled sub-sectors.
Fixed income markets have staged a significant recovery since April — the focus is finally starting to shift back to fundamentals.
Never mind the recent uptick in inflation—we believe the Fed’s zero interest rate policy is here to stay.