Navigating the Late Credit Cycle: Fixed Income 2019

By Kevin Akioka - February 1, 2019

We've heard a lot about volatility over the past two quarters. Frankly, I don't see that changing anytime soon—but that's not necessarily a bad thing. Volatility presents corporate credit investors with several yield prospects. The key will be selectivity.

This late in the credit cycle, profits and cash flow tend to slow down. That underscores the need to be much more careful in how we look at industries and individual companies. For 2019, I'm optimistic about the ability to find some attractively valued securities in several sectors.

In this quarter's outlook video, below, I dive into exactly where we might see good value across the fixed income sectors in 2019.


  • Related Articles
  • More From Author

Fed Leaves Interest Rates Unchanged

The Federal Reserve (Fed) left interest rates unchanged at its March meeting, hinting additional rate hikes may be off the table for the rest of 2019.

For Brexit, the Only Certainty Is More Uncertainty

U.K. policymakers cast three Brexit votes this week. Yet, the terms governing the U.K.’s exit from the EU continue to remain unclear.

Finding Perspective Amid Turbulence

Head of Investment Solutions Cleo Chang analyzes possible performance drivers in a volatile 2019 and market reactions to similar selloffs in the past.

    Navigating the Late Credit Cycle: Fixed Income 2019

    Volatility makes many investors nervous, but Fixed Income Sr. Portfolio Manager Kevin Akioka sees opportunity amid changing market conditions.

      Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

      References to specific securities are for illustrative purposes only, and are not intended as recommendations to purchase or sell securities. Opinions and estimates offered constitute our judgment and, along with other portfolio data, are subject to change without notice.

      Diversification does not assure a profit nor does it protect against loss of principal.