In an increasingly global economy, opportunities for investors are occurring all over the world. In fact, the majority of the world’s corporate earnings (64%1) are currently being generated by companies outside the United States.
Many investors understand the importance and appreciate the benefits of diversifying their equity portfolios internationally. But many of these same investors have traditionally limited their corporate bond exposure to opportunities in the United States. However, diversifying your corporate bond exposure globally has the potential to reduce risk, increase income and enhance total returns.
Consider that:
• Investors the world over use corporate bonds as a core position to help generate income, reduce risk and diversify their portfolios2
• There is a much wider opportunity set in corporate bonds when investors do not restrict themselves to U.S. issuers—a global universe currently features 2,761 issuers and $11.2 trillion in overall debt3
• Historically, incorporating non-U.S. corporate debt has provided diversification benefits within a corporate bond portfolio4