Chart: Four risk factors create opportunity in fixed income

  • #chartonthego

Download PDF

Being flexible can allow you to respond to changes in the fixed-income market.

Which fixed-income factor outperforms? It changes, so stay flexible.

 

  • Interest rates (i.e., duration) are just one part of fixed-income investing. There are four risk factors that create opportunity in fixed income: duration, credit, inflation and currency.
  • These risk factors aren’t highly correlated. Investors don’t need to be in or out of the bond market completely — a flexible approach can adjust to changing opportunities.

 

Download as a client-approved PDF