Bonds

Investing in bonds, otherwise known as fixed income or interest, means investing into debt contracts issued by governments, companies or other corporations. It not only offers investors the potential for growing capital, it also offers the opportunity to generate an income through coupon payments (regular interest payments) provided by the bond issuer.

Types of Bonds

Lower-Risk Bonds

Government-issued bonds (like UK Gilts or US Treasuries) are considered lower risk so they typically have high credit ratings.

Higher-Risk Bonds

Bonds with lower credit ratings (so a higher level of risk) pay investors higher levels of coupon payments — to compensate for the higher risk that they might not get their money back at "maturity". These riskier bonds are called "high yield" bonds.

Our Approach

Integrated Research Platform

With bonds issued across the major bond indices numbering in the thousands, we believe that a broad and deep research platform is crucial for evaluating and identifying the best investment opportunities. Our integrated approach combines fundamental and quantitative analysis. Fundamental research gets us up close to bond issuers, while quantitative insights give us an objective and systematic way to evaluate them. Our disciplined investment process combines these insights to help us identify our highest conviction opportunities.

52 Years' Experience

For over 52 years we have applied innovative research and award-winning portfolio management to help our clients navigate global bond markets. Consequently, we are one of the world's most recognised leaders in the asset class, with over $322.0 bn in fixed income assets under management.

Our global team of fixed income experts includes nearly 119 dedicated investment professionals - a dynamic mix of seasoned portfolio managers, analysts, and economists who collaborate through a global network.

*AB as of 31 December 2020

 

Investment Range

Developed Market Fixed Income

We provide a range of strategies focused on fixed income opportunities in the US, Europe and Asia.

Emerging Markets

Our active approach encompasses investment in government bonds and debt issuances from companies situated in emerging markets.

Global

We offer a range of global bond strategies. From core bond solutions, meaning a diversified portfolio of fixed income investments from across the risk spectrum, to more specialised approaches involving higher risk assets in order to target a higher level of income.

High Income

We regard ourselves as pioneers in income-oriented investing—we have decades of experience in investing in higher-income bonds, including high-yield corporate bonds, emerging market debt and securitised assets. There is a trade-off for these bonds’ higher income potential—greater volatility and higher default risks. We believe our disciplined research process help inform us in our aim to strike the right balance between risk and return.

Experience

Our global team of fixed-income experts includes nearly 119* dedicated investment professionals—a unique and dynamic mix of seasoned portfolio managers, analysts, and economists who collaborate in real time, through a 24/7 network.

45
Portfolio Managers
Average Years Experience: Industry 23, AB 13
53
Research Analysts
Average Years Experience: Industry 18, AB 8
21
Traders
Average Years Experience: Industry 20, AB 10

As of 31 December 2020

If you are unsure of the suitability of any investment, please consult a financial adviser. AllianceBernstein is not authorised to provide investment advice. The value of investments can fall as well as rise and you may get back less than originally invested.