Expand your potential with global bonds

Learn how investing across global bond markets can offer a wider range of opportunities for growth, income and diversification.

Bonds can play an important role in most investment portfolios, offering the potential for: income, diversification, price appreciation and steadier returns when compared to stocks. Investing across the vast global bond market can increase your opportunity to pursue these valuable benefits.

Global bond basics
globeBonds are issued by governments all around the world and by companies in every industry sector. When you buy a bond, you are lending money to the issuer, who agrees to pay it back at a specific time, and in most cases, to make regular interest payments along the way. Many people associate bonds with U.S. Treasuries, however, they represent only about 13% of the worldwide total. Today’s global bond market is huge and is valued at more than $90 trillion.

Investing through a global bond fund
magnifying glass and bondsIf investing in global bonds seems right for you, consider investing through an actively managed mutual fund. In a global bond fund, a professional portfolio manager will search for opportunities across markets, research and then select bonds on your behalf. Mutual funds also give you access to a wider range of bonds, providing an opportunity to increase return potential and diversify risk. A global bond fund that invests in a broad selection of bonds can provide a solid foundation for your portfolio.

Why go global?
For bond investors, the global marketplace offers a wider range of opportunities for growth, income and diversification.

  • Growth: The world’s economy is changing, and many emerging market nations are growing faster than the developed world. In fact, taken together emerging markets make up about 36% of the global economy – a larger portion than the U.S.
  • Income: Historically low interest rates in the U.S. have made it challenging for investors to achieve their income goals. Other countries may have more favorable conditions, including faster economic growth and higher interest rates.
  • Diversification: Investing in a broadly diversified bond portfolio that includes a range of countries, industry sectors and currencies can reduce risk and help to preserve your assets. Keep in mind that diversification does not protect against loss.

Emerging markets now make a larger contribution than the U.S. to world GDP.
economy and emerging markets bar chart

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Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus and summary prospectus, if available, which may be obtained by contacting your investment professional or PIMCO representative or by visiting Please read them carefully before you invest or send money.

A Word About Risk: Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. 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 the current low interest rate environment increases this risk. Current 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.

This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO and YOUR GLOBAL INVESTMENT AUTHORITY are trademarks or registered trademarks of Allianz Asset Management of America L.P. and Pacific Investment Management Company LLC, respectively, in the United States and throughout the world. © 2015 PIMCO