how absolute return bonds can help | Insight Investment

There are several uses of low risk, go anywhere, benchmark-unconstrained bond strategies in current markets.

A strategy designed to seek positive returns, regardless of the wider market moves, can play a distinct role within portfolios. As we discuss investment strategies with our clients, we see many using absolute return strategies to achieve three goals today:

• to reduce broad credit exposure when spreads are tight,
  
  
• to increase resilience in the face of tail risks, and
  
  
• as a strategic allocation to pursue relatively low risk, cash-plus returns.