For decades, investors have turned to the bond markets to add stability to their portfolios and to generate steady income. But after the unprecedented volatility in 2008 and 2009, and with interest rates today near historic lows, we believe today's fixed-income opportunities require an active approach.
A more comprehensive view of risks leads to a broader range of opportunities
Term structure and interest-rate sensitivity are just some of the risks inherent in fixed-income investing. Also, prepayment, credit, and liquidity risk all play a role in determining a security's price. By actively working to determine which risks are worth taking and when, Putnam is able to tap into the potential investment opportunities from a much broader range of sectors, including a number of areas beyond the benchmark index.