Innovation in Fixed Income Opportunities

MagGlass_layeredGone are the days when fixed income strategies served only as a relatively reliable hedge against risk. Today, fixed income strategies use the increasing sophistication of the marketplace to capitalize on myriad innovative opportunities for creating alpha. Yet certain investors still seem averse to the global fixed income landscape. While products in the fixed income space can indeed involve a high degree of complexity versus other types of investments, they create unique opportunities to be capitalized upon by investors who have access to robust portfolio management and research.

“The fixed income investment marketplace has evolved a great deal over the last decade,” explains Christopher Molumphy, Chief Investment Officer for the San Mateo, California-based Franklin Templeton Fixed Income Group. “Even as recently as five years ago, while global equity investing was universally accepted, there were still questions about the validity of fixed income on a global basis.