‍

‍

AltsWire - Since January, volatility in Washington has added new layers of complexity to the investment landscape. Once buoyed by resilient consumer spending and AI-driven optimism, equity markets have stumbled as investors weighed the risk of disrupted supply chains, higher costs, and slower global growth.

Yet amid this turbulence, bonds have quietly returned to form, resuming their traditional role as portfolio ballast. U.S. Treasurys and high-grade corporates have attracted meaningful inflows amid signs of a cooling labor market and slowing economy, which had reignited rate cut expectations.

However, recent volatility in longer-term yields – despite expectations for the Federal Reserve to cut rates by up to 100 basis points this year – underscores the importance of active duration management. In this environment, with a backdrop of geopolitical tensions and unpredictable trade dynamics, traditional bonds alone may not offer sufficient protection or return.

Private credit – especially strategies focused on senior secured lending, real estate credit or asset-backed deals – is proving to be a powerful complement to traditional fixed income. These investments typically deliver high, consistent cash flow, often in the 8% to 12% range, allowing portfolios to generate meaningful income while materially shortening duration.

‍

Visit altswire.com to read full article

‍

‍