Rise Above Rates

Rising Rates and Global Bonds

While the Fed has embarked on a tightening cycle, other central banks are on a different path - with many pursuing accommodative policies and low to negative rates.

Global fixed income product manager Olivia Albrecht discusses policy environments and fixed opportunities outside the U.S.

Investors concerned about the impact of rising U.S. rates may want to consider non-U.S. developed market bonds.

  • The next Fed hiking cycle will be a headwind but not necessarily a severe bond market for U.S. fixed income investors.
  • Many traditional strategies for mitigating the effects of rising rates simply substitute one risk (interest-rate risk) for another risk (credit risk).
  • A simpler solution may be to consider bonds issued in developed nations currently offering more accommodative environments for bondholders.

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