Fixed Income

Fixed-Income Investments: An Active Approach to Generate Income

 
 

Five Strategies for Navigating Bond Markets

In today’s volatile market environment, many investors are still sitting in money-market funds, trying to divine the timing of the first central bank rate cuts.  But investors who wait too long to get off the sidelines may find they’ve missed out. Bonds could see a boost as the Fed continues to cut rates. While you may not be able to time rate cuts precisely, you can get ahead of the shift from cash to bonds by applying these five strategies.

 

Building Blocks for Efficient Income

 

An efficient income portfolio minimizes the level of drawdown risk for every level of income.

 
  1. Embrace risk to generate income with global, multisector credit

    Add global high yield, emerging-market debt and securitized credit in a diversified portfolio to generate excess income.

  2. Choose high quality for downside mitigation

    Embrace high-quality core bonds to counterbalance risk assets.

  3. Balance rates and diversified credit in a barbell structure

    This efficient structure generates the most income for every unit of risk.  

 
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Bond Math Calculator

Calculate the impact of interest rate moves on your portfolio with the AB Bond Math Calculator

 
Featured Resources
 
02 January 2025 / 6 min read
Scott DiMaggio

Continued volatility, falling yields, and other expectations for the year ahead, plus seven strategies to take advantage.

 
Fahd Malik , Will Smith , AJ Rivers , Gershon Distenfeld , Matthew Sheridan , John Taylor , Scott DiMaggio , Serena Zhou

Explore the latest thoughts and fixed income market updates from AB's Senior Portfolio Managers

Sand blowing across desert dunes
15 January 2025 / 4 min read
Will Smith , Tiffanie Wong , Robert Hopper

New policies could disrupt markets, but high starting yields and strong demand for income should provide ballast.

 
 

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A Note from the Trading Desk

A bi-weekly fixed income market update from our senior portfolio managers.

Explore AB's latest Note from the Desk

 
 
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Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, contact your financial representative. Please read the prospectus and/or summary prospectus carefully before investing. 

There is no assurance that a separately managed account will achieve its investment objective. Separately managed accounts are subject to market risk, the market values of securities owned will fluctuate so that your investment, when redeemed, may be worth more or less than its original cost.