We are in an environment of very low nominal and real interest rates. For investors seeking compelling income opportunities, a high yield portfolio like Syfe Select Global Income may be the answer.
The Global Income portfolio has meaningful exposure to investment grade and high yield corporate and government bonds. The allocation to government bonds (32%) helps provide stability during times of volatility, while corporate bonds (68%) help generate better returns.
What’s more noteworthy is the portfolio’s significant allocation (55.2%) to emerging market bonds. Bonds from developed markets make up the rest of the portfolio. Emerging market bonds typically offer more attractive yields, yet have historical default rates similar to developed markets corporate bonds.
Source: PIMCO, Moody’s, as of May 2020
Across different credit ratings, emerging market corporate bonds also have comparative or more attractive yields compared to US bonds.
Source: Fidelity...