Fixed Income: Low Yields Don't Tell the Whole Story
Subscribe It’s tempting these days for some investors to question the role of fixed income in portfolios. After all, real yields have plunged, potentially leading to less income today and smaller capital gains tomorrow. But yields are far from the full story. Despite low yields, bonds can continue to diversify risk in broad portfolios. Interest rates may fall further, boosting valuations. And some segments of the fixed income market – credit in particular – remain attractive relative to equities, in our view. We believe active management remains the key to realizing this potential, as...
Source: pimco.co.uk
