Investors can continue to achieve their fixed income goals in a low yield environment by blending multiple bond strategies based on their investing needs.
What role do bonds play in your portfolio?
Bonds have historically provided strong diversification from stocks, but today that diversification is even harder to find. The correlation of bonds to stocks has increased 310%*.
While many investors look to bonds for stability, the interest rate risk of traditional bonds is 46% higher than it was in 2009†. Even a small increase in interest rates could affect the value of the bonds in your portfolio.
Many investors invest in bonds for income, but with interest rates at record low levels, yield is more elusive. Less than 15% of bonds yield more than 4‡.