Fixed Income: Strategies to navigate the 'new normal'
In today’s bond markets, the old rules no longer apply - and investors need to adopt new, targeted approaches to secure yield that explore the full spectrum of fixed income opportunities.
Fixed Income
New strategies for trying times
In today’s bond markets, the old rules no longer apply - and investors need to adopt new, targeted approaches to secure yield that explore the full spectrum of fixed income opportunities.
In this article
  • The old rules no longer apply in the fixed income markets, meaning investors need to look beyond conventional bonds and strategies to secure yield
  • Growing divergence among US, European and emerging market bonds, as well as bonds of various durations, argue against a ‘one size fits all’ approach to fixed income investment
  • The depth of analysis and diversification needed to generate optimum returns in the current environment requires an active approach to portfolio management
Asia Fixed Income:
A region of opportunity
A dynamic region
Emerging Asia 2017 growth forecast:
Supporting a high growth fixed-income market
East Asia local currency bond market growth (Q3 2016):
Asian markets stand out in a yield-scarce environment
10-year government bond yields, 2016 ranges:3
A thriving corporate sector
Corporate high-yield default rates (end-2016, est.):4
That generates attractive returns
Average yield range, Asia high-yield bonds, 2006-2016:
  • Source: International Monetary Fund, October 2016.
  • Source: Asia Development Bank, November 2016.
  • Source: Fusion Media Limited, as at 30 December 2016
  • Source: Moody’s, September 2016.
  • Source: Bloomberg, Allianz Global Investors, as at 30 December 2016. Based on JP Morgan Asia Credit Index (JACI) – Non-Investment Grade.
Meet the team
Allianz Global Investors has worldwide investment capabilities that are underpinned by the knowledge and experience of a global network of portfolio managers and analysts. Our investment teams are located near the markets in which they invest, because we believe that local knowledge is key to creating a sustainable advantage. With 25 locations+ in the US, Europe and Asia Pacific, we are well-positioned to deliver key local insights to our clients wherever they are.
EUR 480 billion
Asset Under Management+
600+
Investment professionals*
10+
Years average tenure of portfolio managers*
25
Locations worldwide+
+Data as at 31 December 2016.
*Data as at 30 Sepetember 2016.
About us
At Allianz Global Investors, we follow a two-word philosophy: Understand. Act. It describes how we look at the world and how we behave. We aim to stand out as the investment partner our clients trust by listening closely to understand their challenges, then acting decisively to provide them with solutions that meet their needs.

Allianz Global Investors is a diversified active investment manager with a strong parent company and a culture of risk management. We offer a broad range of investment capabilities and styles. Our distinct and entrepreneurial investment teams have deep knowledge of the markets in which they invest. They manage portfolios designed to deliver performance that meets clients‘ needs through thoughtful and disciplined investment processes.