BlackRock Strategic Income Opps Inv A
Jeffrey Gundlach Compares Donald Trump to an Unconstrained Bond Fund
While referring to presidential candidate Donald Trump, Jeffrey Gundlach commented that “Trump is the unconstrained bond fund of the political arena.”
How Bond Holders Could Handle Interest Rate Risk
The prime reason for the increasing popularity of unrestricted bond funds is the low interest rate environment.
Why Unconstrained Bond Funds Could Be Useful Now
Unconstrained bond funds use leverage and derivatives in their portfolios, which magnifies their risk. They have exposure to both credit and interest-rate risk.
Why some unconstrained bond funds are seeing investor outflows
Legendary bond investor Bill Gross left Pacific Investment Management Co. (or PIMCO) in September, causing investors to exit en masse from PIMCO-sponsored funds. Total outflows for all of PIMCO’s funds were estimated at $23.5 billion in September.
Must-read: How to invest in unconstrained bond funds
There are a number of options available to those interested in investing in these funds. We’ll look at the key fund characteristics of the more prominent players. But investors are advised to read the respective fund prospectuses for more details.
Weighing the pros and cons of unconstrained bond funds
Unconstrained bond funds can invest anywhere in the world. They can have simultaneous positions in both high-yield and investment-grade bonds, government and corporate, or fixed and floating rate bonds.
Your must-know guide to unconstrained bond funds
Investor interest in these funds is strong. Unconstrained bond funds offer options for managing fixed income risks, without being shackled by index constraints.