- A fixed income investment can serve as diversifier against equities, a source of income, or even protection against inflation when using TIPS.
- As interest rates and inflation expectations evolve, a tactical rules-based approach to portfolio optimization can help provide investors with a flexible fixed income allocation in different scenarios.
- Three of the more common fixed income characteristics are duration, credit quality, and product/sector type. An investor's allocation to each of these may depend on the economic cycle and yield curve.
For further details see:
Choosing A Fixed Income Allocation With Portfolio Optimization