Our perspective on global micro event and strategies.
As an investment specialist in Investment Product & Fund Strategies, Jonathan works with local relationship teams to engage with clients in the region and represent the firm’s broad fixed income capabilities. He contributes to developing new product and client solutions as well as managing business issues such as capacity, fees, and guidelines. He also participates in meetings with clients, prospects, and consultants to communicate our investment philosophy, strategy, positioning, and performance.
With a sustained rise in interest rates in the coming months a distinct possibility as of this writing, we thought now would be an opportune time to take a close look at some potential impacts of higher rates on clients’ fixed income portfolios. To do so, we compared the hypothetical five-year performance of the Bloomberg US Aggregate Bond Index under three different illustrative scenarios that could play out going forward: 1) rates remain unchanged; 2) rates rise abruptly; and 3) rates rise gradually (i.e., over three years).
A few of our main takeaways from this analysis were as follows: