Fixed income investors are in a phase where rate cuts are the next big move to play for and strategic fixed-income positioning can help unlock income and returns in a rate-cutting cycle.
Investing in the once 'boring' UK government bond market has never been more popular but investors have a lot to consider outside of rates and inflation.
Be optimistic on alpha generating opportunities, but still with an up in quality bias and a global lens in terms of putting together the optimal portfolio.
The decision that managers of strategic bond funds need to take is not simply whether to increase or decrease the fund’s high-yield beta or its duration: stock selection matters once again.