Aligning financial and climate obligations within fixed income portfolios

The unique characteristics of short-dated bonds offer investors an opportunity to access a lower volatility segment of the broader investment-grade fixed income market. Short-dated investment grade bonds can be attractive to a diverse range of clients, including pension schemes undergoing de-risking or local authority treasurers seeking enhanced returns above cash which can help mitigate the effects of Inflation. Short-dated investment grade bonds can offer attractive and relatively consistent returns against a market backdrop of negative real returns. The diagram below highlights that risk...