For the first time in years, rising yields have made bonds a much more powerful part of the asset allocator’s toolkit. How should asset allocators be thinking about the role of fixed income in portfolios?
- Lessons from History
- High Yield in an Uncertain Environment
- Seismic Shifts
“Historical data illustrates a more stable distribution of bond returns compared to equities. In our view, bonds are quite resilient and with far less risk relative to equities.”
Steven Friedman, Senior Macroeconomist, Head of the Macro and Quantitative Solutions Team
"There are a fair amount of high yield bonds coming due in 2024 and 2025. It's about $110 billion or about 8% of the market, which we think is manageable, particularly in this environment where there is a significant embed for credit.”
Joseph Maietta, Managing Director, High Yield
“Given that certain municipal issuers have the flexibility to raise revenues and even cut expenses when they need to, it gives them the latitude to stay relatively stable.”
Mike Denlinger, Managing Director, MacKay Municipal Managers
Fixed Income in 2024: Lessons from History
What do points in history, in which yields were similar to recent levels, tell us about the current opportunity set for fixed income?
Using High Yield in an Uncertain Environment
How should asset allocators be thinking about high yield bonds as part of their toolkit in this uncertain environment?
Seismic Shifts Set the Scene for Active Security Selection
Why we believe municipal bonds remain a strong late-cycle asset class, offering attractive relative value opportunities from fundamental security selection.
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