File Outline Insight

Yield Advantage: Riding the Curve

Global bond investors can use three basic principles to manage risk in 2024: diversify duration exposure, prioritize flexibility, and use generous real yields to build potentially inflation-beating income streams.

A purple ball with white background.

12/6/2023

6 min read


Topic

Fixed Income

Key takeaways

  • A relatively flat yield curve reduces the opportunity cost of extending or shortening duration, but it increases the risk of being too concentrated in one part of the curve.
  • Implementing many small decisions across multiple sectors and maintaining investment flexibility is preferable to investing based on one big macro view.
  • High nominal yields and generous real yields create an opportunity to build durable, inflation-beating cash flow streams over the coming years.
Download Download