Chris Anast
Andrew Bates
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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