File Outline Insight

Isolating Income

Currently, pure income is most generous at the front end of the yield curve, incentivizing investors to migrate toward front-end strategies. George Bory and Henri Proutt explain.

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2/21/2023

2 min read


Topic

Fixed Income

Key takeaways

  • Of the two drivers of return in fixed income portfolios, income dominates over income reinvestment.
  • Current yield levels can set the cornerstone for income investing over the coming years.
  • High-income investment strategies should generate highly efficient risk-adjusted returns.
  • Tighter monetary policy should keep bond yields elevated and the yield curve inverted for the foreseeable future.
  • Short-duration strategies offer generous yields, but intermediate and long durations should not