When bond yields are high, a combination of income and potential for capital growth can reduce potential for portfolio drawdowns.
Structural value opportunities persist
Going global can increase diversification
Shortening duration can still capture attractive yields
Returns are based on contractual cashflows
High levels of income can dampen portfolio swings
Shorter‑dated fixed income can reduce default and interest‑rate risk without sacrificing yield.
Default risk can be actively assessed and managed by a strong credit team.
Global diversification across issuers, structures, regions, and sectors can reduce overall portfolio risk.
Some instruments such as asset-backed securities can offer higher yields than corporate bonds with comparable credit ratings.
