In this Fixed Income Insight, Nick Maroutsos, Dan Siluk and Jason England explain the importance of redefining what core fixed income allocations may look like going forward.

They cover:

  • The US Federal Reserve’s forward guidance on interest rates and balance sheet tapering stand to put downward pressure on bond prices, and investors may soon face a day of reckoning on their fixed income allocations.
  • Rather than lowering return expectations, investors can take steps to proactively adjust interest rate, credit and geographical exposure to better navigate future market challenges.
  • Central to a strategy seeking to deliver positive returns is a bond portfolio that incorporates securities which are able to generate income and have sufficient yield cushions to counteract rising rates.

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