Why investors should choose active for fixed income

Passive fixed income strategies have flaws that give active managers the opportunity to demonstrate their skills. These inefficiencies could be further exposed this year, as investment risks and markets continue to evolve. The year has started amid an intriguing market backdrop. Competition for capital is increasing, government deficits are rising, and AI-related investments are set to test public credit markets. AI adoption is triggering new capital spending, making waves beyond the technology sector. Traditional companies with tight credit ratings may need to offer higher‑spread bonds to attract...