Fixed income insights

We are thrilled to announce the launch of the iShares € Flexible Income Bond Active UCITS ETF (IFLX), a dynamic bond portfolio designed to maximize income while maintaining long-term capital growth.

The Fed’s pause in interest rate cuts is giving bond investors pause, with sticky inflation and strong labour market indicators raising questions over the level of policy restrictiveness.

The current regime of heightened macro and market volatility has increased dispersion within credit markets. This creates more opportunities for skilled managers to identify and capitalise on specific sectors, like high yield and emerging market debt, where active strategies can deliver greater returns.

EMD is back on the radar with alpha opportunities, compelling yields and a reasonably positive outlook. But despite its advantages, many multi-asset portfolios hold much less than they should.

In this paper, we discuss the opportunity within bonds and why investors may want to consider moving now to capture these decades-high yields, get cash off the sidelines, and employ efficient, precise tools such as bond ETFs in this new market regime.

Discover how fixed maturity product like (iBonds ETFs) can help you lock in higher yields ahead of potential further rate cuts from central banks.

Built to mature like a bond, trade like a stock and diversify like a fund, iBonds ETFs help you target a specific point on the yield curve – while accessing hundreds of bonds from hundreds of issuers. They’re simpler, cheaper and more diverse than portfolio of individual bonds can be.

With pre-election volatility looming, we still prefer euro-denominated credit over its US equivalents. Euro high yield has an enviable yield cushion, and the BBB-BB bucket within investment grade looks strong. That said, beware the potential for large single-name shifts: careful selection is key.

High-yield bonds offer higher yields and are less sensitive to interest rate changes than IG bonds. However, they are less commonly included in portfolios. Investors should consider broad U.S. and European HY bond ETFs for exposure and risk diversification across 1,862 and 682 bonds, respectively.

Make the most of the mis-pricings in Europe’s debt markets with the BGF Euro High Yield Fixed Maturity Bond Fund 2027. This active, research-driven fund blends our very best credit ideas with a selection of high-quality government bonds – all maturing close to the end date of the strategy itself.

Explore the latest innovation in iShares' Islamic investment lineup with the newly introduced iShares $ Sukuk UCITS ETF. This fund provides diversified exposure to emerging market sukuk instruments (Islamic bonds), helping investors capture attractive yields while complying with Islamic investing principles.