Making The Most of Fixed Income Investing Now
Managing equity and interest rate risk may be key to reaching income and growth goals.
The fixed income landscape has never been more challenging for investors, and current allocations may not be ideal for the road ahead. Given the current uncertainty, fixed income investors should ensure that their portfolios are properly diversified to align with their outlook and desired risk.
A Broad Spectrum of Solutions
How well might current bond holdings help mitigate equity volatility?
Core Bond strategies can target a relatively steady source of income that can also help anchor portfolios to help mitigate equity volatility and act as a buffer to credit risk.
Are they positioned against rising rates and global macro risks?
Short duration strategies to tactically address interest rate concerns may help mitigate the effect of rising interest rates.
Are they meeting current income and growth goals?
Opportunistic strategies including those with a global approach and flexible guidelines may help reach specific income and growth goals and also enhance overall portfolio diversification, given a willingness to accept the potential for heightened volatility.
Clearly, no one strategy can address all the challenges in the bond market. But a diversified portfolio — including core, core complement and opportunistic fixed income components — may offer the best potential to secure the traditional benefits of fixed income while seeking better risk-adjusted returns over a market cycle.
Legg Mason’s bond managers — Western Asset and Brandywine Global — offer a wide range of solutions across the fixed income spectrum to address these questions and potentially help investors build an all-weather bond portfolio.
- Discover Western Asset
Western Asset’s active approach combines long-term fundamental value with multiple diversified strategies.
Investment Process Summary
Duration measures the sensitivity of price (the value of principal) of a fixed income investment to a change in interest rates. The higher the duration number, the more sensitive a fixed income investment will be to interest rate changes.
All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s web page for specific details regarding investment objective, risks, performance and other important information. Review this information carefully before you make any investment decision.
Carefully consider a fund’s investment objectives, risks, charges and expenses before investing. Please view the prospectus or summary prospectus, for this and other information. Read it carefully.
Fixed-income securities involve interest rate, credit, inflation, and reinvestment risks; and possible loss of principal. As interest rates rise, the value of fixed-income securities falls.
High yield bonds are subject to greater price volatility, illiquidity, and possibility of default.
International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility.
These risks are magnified in emerging markets.
Diversification does not guarantee a profit or protect against a loss.