Strengthen Your Core: Flexible Multi-Sector Strategies for a Low-Yield World

Authors: Seth Meyer, CFA, Portfolio Manager; John Kerschner, CFA Head of U.S. Securitized Products, Portfolio Manager; John Lloyd, Co-Head of Global Credit Research, Portfolio Manager

The extended period of accommodative monetary policy from major central banks has fostered a low-yield environment where most institutional investors find the yields on their traditional core and core plus strategies aren’t keeping pace with their spending needs. In response, plan sponsors are seeking a more optimal mix of fixed income strategies. With accommodative monetary policy likely to remain in place for longer than many had expected and the end of the credit cycle drawing near, we advocate for an option that has the potential to both increase the yield of an overall fixed income structure and maintain the risk-reducing benefits of the asset class. In what follows, we advocate for more flexible, multi-sector fixed income strategies that can act as a complement to traditional core and core plus mandates. Learn more here.