Are bonds a good investment right now?

Bond Investing: Where We Have Conviction

Favoring Treasuries, leveraged loans and light on credit risk
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Key Takeaways

• Fidelity Portfolio Manager Michael Plage says he and his colleagues see value in U.S. treasury bonds given their higher yields relative to a few years ago.
• Plage, who manages institutional fixed income portfolios as part of a broader portfolio management team, also favors leveraged loans − floating-rate securities with a solid current yield that adjust over time.
• Now is a great time to invest in bonds, according to Plage, and he lays out the case why the three main reasons to own them – income, diversification and capital preservation – are all in play at this time.
• “One of the biggest advantages” for investing in bonds through Fidelity is that the company is one of the world’s largest bond managers, but also one of the world’s largest equity managers, Plage says. “The companies that come through our doors are sitting across the table from one of their largest shareholders and one of their largest potential creditors, which makes it really hard to spin a story,” he contends.