HIX - How To Keep Your Balance In Shaky Bond Markets
By Matthew Sheridan
Bond strategies that balance interest-rate and credit risk struggled in 2018. Is this time-tested approach past its prime? Hardly. We think investors will need to blend exposure to both to generate income and limit risk in 2019.
Pairing high-yield corporate bonds and other credit assets with high-quality government debt in a single strategy has historically been a good way to manage volatility and limit downside risk. That's because these bonds usually take turns outperforming each other.
For example, faster growth tends to feed inflation and push up interest rates, which erodes the