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Interest Rates: A Closer Look

Positioning Your Portfolio

Positioning across interest rate environments

  • Reduce sensitivity to rising rates

    With short-term strategies, you can de-risk by reducing your portfolio’s sensitivity to interest rates and overall volatility while still seeking attractive yield.

    Short-Term Assets
  • Seek resiliency in an environment where rates may fall

    Benchmark-oriented core bond portfolios – typically offering diversification with a high-quality bias – may provide resiliency in a risk-off environment when rates typically fall.

    Visit Total Return
  • Embed flexibility to navigate different environments

    Benchmark-agnostic strategies offer a greater ability to diversify traditional risks and tactically reposition to take advantage of market dislocations.

    Income Solutions

FAQs

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Disclosures

Global Central Bank Rates represented above: U.S. - Fed Funds Rate Upper Bound; UK - BOE Bank Rate; ECB - ECB Deposit Rate; Japan - Tokyo Overnight Average Rate (TONAR); Canada - BOC Overnight Rate; Brazil - Brazil Selic Target Rate; China - China 1-YR Benchmark Lending Rates.

Past performance is not a guarantee or a reliable indicator of future results.

All investments contain risk and may lose value. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and low interest rate environments increase this risk. Reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed.

There is no guarantee that these investment strategies will work under all market conditions or are appropriate for all investors and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market.

CMR2021-1209-1949989

US

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