BlackRock’s Investment Institute recommends that investors take a “granular investment approach” to increase their allocations in Fixed income, with the asset class showing some of most attractive yields in years, but also potential headwinds in credit markets. 

BlackRock suggests investors take advantage of short-term government paper, adding that long-term government bonds no longer have the negative correlation to stock returns that once made them an ideal hedge to volatility in equity markets. 

Osterweis Capital Management’s Strategic Income Fund, ticker OSTIX, has been named the Best Multi-Sector Income Fund Over Three Years in the 2023 Refinitiv Lipper U.S. Fund Awards.  

The Osterweis Strategic Income Fund launched in 2002 comprises fixed income securities selected through fundamentals-based research and is benchmark-agnostic, allowing the managers flexibility to pursue the most attractive risk-reward characteristics regardless of duration, market segment, credit rating, and sector. 

Bob Michele, Fixed Income CIO at J.P. Morgan Asset Management, has commented on the precedent set in the bond market with the collapse of Credit Suisse and the bail-in and wipe out of $17 billion dollars of Credit Suisse’s AT1 bonds, also known as “contingent convertibles’ or “CoCo” bonds.  

“CoCo” bonds make up a $275 billion dollar market, held by pensions and institutional investors globally, advising holders of CoCo bonds to review if they’re being adequately compensated for the risk.