Navigating Investing in Today’s Markets with Maulik Bhansali
Maulik Bhansali highlights what he believes is the enduring role of core fixed income as a portfolio ballast with its ability to deliver income, liquidity, and downside protection in today's market.
Transcript
Cameron Pickoski: We're here in Fort Lauderdale at our Sales Summit this week, where the theme is “Charting the Course.” With that in mind, Maulik, we wanted to talk to you about navigating investing in today's markets and maybe what's changed about the role of fixed income in portfolios today and what remains essential as well?
Maulik Bhansali: Yeah, the way we think about core fixed income, I mean, it's supposed to be the ballast in your portfolio. I think there are three things that core fixed income should deliver. The first is just a reliable source of income and total return. The second is liquidity, you know, for it to be there when you need it. And the third is really providing downside protection in times of market stress. So, that hasn't changed. That's always been what we're trying to deliver. I think what has changed is the ability of core fixed income to deliver those things. If we think about a couple of years ago, it wasn't really providing a lot of income and it wasn't really providing a lot of downside protection. Now that we're back in an environment of reasonable yields, I think it's well positioned to deliver on all of that.
Key takeaways
- Core Fixed Income's Essential Role: Maulik believes core fixed income continues to serve as a portfolio ballast that can provide income, liquidity, and downside protection during market stress.
- Improved Yield Environment: Unlike a few years ago, today’s reasonable yields can enhance fixed income’s ability to deliver reliable income and total return.
- Renewed Downside Protection: With higher yields, core fixed income may be better positioned to offer the downside protection investors expect in volatile markets.
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