Most unconstrained bond funds claim to offer the following potential benefits: Low correlation to core fixed income; Attractive risk - adjusted returns; and Actively managed downside risk mitigation.
The Risks of Go - Anywhere Bond Funds
Most unconstrained bond funds replace interest - rate risk with corporate credit risk, which can make their portfolios behave more like stocks.
Not exact matches
One of the counterintuitive implications is that
unconstrained funds can actually be
most useful in more conservative portfolios that are dominated by traditional
bonds.
One of the counterintuitive implications is that
unconstrained funds can actually be
most useful in more conservative portfolios that are dominated by traditional
bonds.
From a recent interview with Bill Gross, manager of the Janus Global
Unconstrained Bond fund: Years of easing by central banks mean that interest rates in
most of the developed world will fluctuate narrowly.