Impact Blog
Video: 2019 outlook for short-duration bonds

The views expressed in these posts are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Calvert disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Calvert are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Calvert fund. References to individual companies for Engagement or Research purposes are provided for illustrative purposes only and may not be representative of the results of all of Calvert’s engagement efforts. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Past performance is no guarantee of future results.

  • All Posts
  • More
      The article below is presented as a single post. Click here to view all posts.

      By Vishal Khanduja, CFA, Calvert Fixed Income Portfolio Manager

      Boston - When thinking about the year ahead, we expect some of the same themes from 2018 will spill over into 2019.

      For example, we believe the Federal Reserve will continue to tighten and that other central banks could move in the same direction this year. Along with geopolitical risks, these tighter monetary policies may lead to broadly higher rates, higher volatility and lower returns for some asset classes. However, we believe this will eventually present a good opportunity set for active managers in fixed income.

      (Tap or click the image below to view the video.)

      Blog Image Vishal K 19 Outlook Jan 9

      Currently, we are favoring shorter duration and spread duration assets. Overall, since we are later in the cycle, we believe it is prudent to be cautious on duration risk and very selective with credit. For fixed-income investors, we believe assessing the health of the balance sheet -- whether it's consumer, sovereign or corporate balance sheets -- will be even more important in 2019.

      Specifically, we like shorter duration bonds that are tied to U.S. consumer balance sheets. Elsewhere, we are also favoring investment-grade corporate bonds in the financial sector, floating-rate securities and high-quality asset backed securities (ABS) and mortgage backed securities (MBS).