With the full impacted of tariffs uncertain, investors are aiming to mitigate risk by focusing on defensive sectors and U.S. small caps.

Our proven strategy can help diversify a fixed income allocation—providing a complement or alternative to full-market high yield and core bonds.

Short-Duration High Income Bonds as a Defensive Building Block: Portfolio Manager Jim Dudnick discusses where and when to consider short-duration high yield.

While high starting yields should provide a buffer against potential volatility, credit selection will be critical as dispersion within and across sectors increases.

Inflation is cooling, the economy is resilient and starting yields offer a cushion against further rate volatility—there’s a lot to like about fixed income in 2025.

Reproduced with permission from AllianzGI

America’s economy is riding high into the new year, lifting investor expectations skyward. Our panel discusses what could propel (or derail) markets in 2025.

As investors prepare for the effects of higher-for-longer rates and a new administration in 2025, we offer five themes we think will drive fixed income markets in the first half of the year.

After a bumpy start, 2024 emerged as a year of resilience for fixed income markets, with strong returns and a promising outlook for U.S. corporate bonds.

Strong economic growth coupled with inflation risks from potential policy shifts have paved the way for a prolonged period of higher interest rates. That could be a good thing for fixed income investors.