Stepping Up Resiliency of Fixed Income Portfolios

By Matthew J. Eagan, CFA®

Rising Rates, Resilient Portfolios

How to build a resilient bond portfolio amidst today’s uncertainty is explained by Matt Eagan, Co-Head of Loomis Sayles’ Full Discretion Team.

Fixed income markets completed the first, and probably toughest, step up in yields during the first half of 2022 in response to Fed policy moves. So what’s next? Matt Eagan, Portfolio Manager, Co-Head of Loomis, Sayles & Company’s Multisector Full Discretion Team, believes active investors can navigate certain areas more confidently now that yields are at a higher level.

In this video, Eagan explains how the Full Discretion Team is finding opportunities across global markets to add resiliency to fixed income portfolios. Topics he covers include:

  • Is the worst of the interest rate rise behind us?
  • What risks should investors consider now, after the worst adjustment is likely over?
  • What might a resilient fixed income portfolio look like today?
  • How might investors go about balancing interest rate and credit risk?
For more insight on fixed income investing, explore Natixis Investment Managers' Fixed Income Designed for Markets in Motion.
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided. Investors should fully understand the risks associated with any investment prior to investing.

Fixed income securities may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity.

This material is provided for informational purposes only and should not be construed as investment advice. The analysis and opinion expressed represent the subjective views of Matt Eagan as of May 2022 and may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted. Actual results may vary.

Unlike passive investments, there are no indexes that an active investment attempts to track or replicate. Thus, the ability of an active investment to achieve its objectives will depend on the effectiveness of the investment manager.

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