The May edition of our popular SOTM was just published, and my favorite slide from this month discussed the need for active, flexible bond strategies right now. Rate volatility has been a near-constant during this current Fed cycle, with the market continually repricing the timing of hikes, holds, and cuts.
This has translated into a rough ride for many Core Bond investors, but more flexible strategies have tended to be success at navigating that same volatility. Since rates hit 4% back in October 2022, Multisector and Nontraditional bond funds have average 7.6% and 6.8% respectively on an annual basis vs. 4.4% for Intermediate Core bond funds and 4.6% for Taxable Money Market funds.
Looking ahead, being more active within fixed income sleeves is likely to continue to be key to any successful outcomes. You can check out the full Student of the Market here -> https://1blk.co/4bLHcwB
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