Income Investing Playbook for 2021: Consider Alternatives :

Income Investing Playbook for 2021: Consider Alternatives


Income Investing Playbook for 2021: Consider Alternatives
When we entered 2020, interest rates were already low, leaving investors 
searching for yield. As the year unfolded, we saw the U.S. Federal Reserve cut rates down to zero to prop up the economy during the COVID-19 pandemic. Looking ahead, rates are expected to remain low for the foreseeable future, so the question of where to find yield remains. We believe alternative income solutions—including preferred securities, business development companies (BDCs) and mortgage REITS—may present an attractive opportunity for investors to enhance yield in their portfolio. As investors plan their 2021 allocations, in this Q&A we explore the current market environment, where to find alternative sources of income and how they may fit within a portfolio.

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