Janus Henderson: Opportunities In Fixed Income As The Fed Approaches Its Terminal Rate
September 21, 2023
Portfolio Managers Seth Meyer and John Lloyd join U.S. Head of Portfolio Construction and Strategy Lara Castleton in a discussion on where they see value in U.S. fixed income and how they believe investors should position portfolios to take advantage of the opportunities available.
33 minute listen – Click to listen
Key takeaways:
- Following the great rate reset of 2022, multisector U.S. fixed income is offering some of the most attractive yields since the Global Financial Crisis.
- While some may be inclined to settle for enticing money market yields, we believe that as the Federal Reserve (Fed) nears the end of its rate-hiking cycle, investors might be better positioned in diversified core fixed income. Higher yields may be available in some credit spread sectors, while duration assets may offer the potential for price appreciation should rates begin to fall.
- We see a high degree of bifurcation taking place in fixed income markets, and as such, we think the current environment is suited to an active, diversified, and multisector approach that may seek to take advantage of relative valuation opportunities.
Source: https://www.janushenderson.com/en-us/advisor/article/global-perspectives-opportunities-in-fixed-income-as-the-fed-approaches-its-terminal-rate/