Why Traditional Fixed Income Alone May No Longer Be Enough

Catalyst & Rational Funds
Alternative Income
Why Traditional Fixed Income Alone May No Longer Be Enough

Historically, traditional fixed income has acted as a counterbalance to equity exposure. This relationship broke down in 2018 for the first time in the history of the Barclay’s Aggregate Index going back to 1976.

Many bond portfolios are under-exposed to the broader fixed income universe. This is problematic as it could lead to a lack of diversification, which could result in higher risk and lower overall returns for investors.