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Managing fixed income in an era of low rates
Chris Anast
Client Analytics Director
Andrew Bates
Multi-Asset Strategist

 


Low rates have made it more difficult for institutional investors to generate income and equity diversification from high-quality bonds. Capital Group’s senior retirement strategist, Chris Anast, and multi-asset strategist, Andrew Bates, discuss ways investors can re-position their bond allocations to address this dilemma.

Key takeaways:

  • Low rates mean that government bonds may be less resilient in equity-market downturns.

  • To maintain adequate income, investors may need to turn to high credit-spread sectors like high-yield and emerging markets debt.

  • Consider bond strategies that use yield curve and duration positioning to pursue diversification and total return.

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Chris Anast is a client analytics director with 25 years of industry experience (as of 12/31/2023). He holds a bachelor's degree in finance from the University of Florida and holds the Chartered Financial Analyst® designation.

Andrew Bates is a multi-asset strategist with 15 years of industry experience (as of 12/31/2022). He holds an MBA from the University of California, Berkeley Haas School of Business.

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