As elevated inflation persists, monetary policy is tightened, and uncertainty lingers, many investors are re-evaluating how they allocate to fixed income. According to Wellington Management's Martin Harvey and Marco Giordano, the key may lie in finding balance – embracing flexibility while maintaining focus.
Martin and Marco believe that the case for fixed income remains strong, particularly given higher yield levels. But with dispersion between sectors, issuers and geographies increasing, a traditional static approach may not be enough.
And we think the signs are encouraging for flexible fixed-income strategies to continue their positive trajectory in today's diverging world, offering both significant scope for downside protection and opportunities for upside potential amid market dislocations. These sudden readjustments in market sentiment are likely to be a constant feature of this new economic era.
Read the full article to explore flexibility and focus in fixed income investing.
