Investors use many strategies when investing in bonds. Read brief summaries describing some of the more common investment strategies used by fixed income investors.
Investors typically use investment strategies to either protect a portfolio from volatility or to enhance the returns generated by a portfolio. As with any investment strategy, the successful use of a particular strategy depends upon many factors including: an investor’s specific investing situation (objectives, tax bracket, etc.), economic and market factors and other factors too numerous to list fully in this discussion. While this discussion touches upon the more popular fixed income investment strategies, the information is provided solely to inform you of various fixed income investment strategies. Before using any investment strategy, individuals should consult with their tax or investment advisor.