Morgan Stanley advises diversifying bond investments — MarketWatch
In the United States, Morgan Stanley's fixed-income investment team believes that investors should diversify their bond investments rather than limit themselves to U.S. Treasury securities or investment-grade bonds. MarketWatch reports.
U.S. Treasury yields
The yield on 10-year U.S. Treasury bonds exceeded 5%. Against this backdrop, investors are seeking new opportunities to earn attractive income outside the stock market. At the same time, forecasting interest rates and bond prices is difficult.
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A broader selection of debt instruments
According to Morgan Stanley portfolio managers, a narrow focus on investment-grade bonds may lead to weak long-term returns and limit opportunities for better results. The team notes that investments in distressed debt and local markets in frontier countries contributed to the fund's good returns.
In the managers' view, investors need a variety of instruments for better long-term results in the bond market.
