Introducing a Low-Volatility Factor to High-Yield Fixed Income

By Salvatore Bruno via

For your clients seeking income, today’s environment is a tricky one. Interest rates are climbing, fixed-income yields are still low, and equities are at higher levels than they’ve ever been.

Volatility, of course, can be a killer for anyone, but that’s particularly so for investors who are past the accumulation stage and are forced to draw down on principal for their income needs.

As an advisor, that presents a sizable challenge: how can you lower risk and continue to provide an attractive yield—all within a relatively short time horizon? One answer: rebalance your client portfolios using a low-volatility strategy in the high-yield fixed income space.

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