Featured Resources
Understanding Investing
01 August 2022
Even after gold ceased to be the “standard” in the global monetary system last century, it maintains its glitter as a viable investment, especially during periods of rising inflation.
Understanding Investing
26 April 2021
Alternative investments offer opportunities to diversify portfolios in times of market uncertainty. But among a range of options, investors must first understand the risks and benefits.
Understanding Investing
08 January 2020
As part of PIMCO’s ESG process, we believe that identifying and successfully engaging with companies that are willing to improve their ESG standing is critical for investors.
Understanding Investing
A glossary of terms to help guide investors through the key terms used in the private alternatives space.
Understanding Investing
High yield bonds – defined as corporate bonds rated below BBB− or Baa3 by established credit rating agencies – can play an important role in many portfolios. They typically offer higher coupons than government bonds or high grade corporate bonds (or, corporates) and have the potential for price appreciation in the event of an improvement in the economy, or performance of the issuing company (of course, if these conditions worsen, then prices can also go down). Because the high yield sector generally has a low correlation to other sectors of the fixed income market along with less sensitivity to interest rate risk, an allocation to high yield bonds may provide portfolio diversification benefits. In addition, high yield bond investments have historically offered similar returns to equity markets, but with lower volatility.
Understanding Investing
Interest rate swaps have become an integral part of the fixed income market. These derivative contracts, which typically exchange – or swap – fixed-rate interest payments for floating-rate interest payments, are an essential tool for investors who use them in an effort to hedge, speculate, and manage risk.