How can I get safe income in the current environment?
- European government bonds yield under 1% and in many cases are negative.
- 10 year U.S. Treasuries are now yielding 2% to maturity.
- U.S. high yield bonds, after a 10 plus year bull run in risky assets, are yielding 4.25% for on average an 8-9 year bond.
We are in an environment of return-free risk.
HAM focuses primarily on legacy non-agency mortgage bonds, those issued up until 2007. Within the asset class, we continue to find bonds with higher yields, lower interest rate risk and terms, and lower credit risk than comparable non-mortgage bonds.
Please view information about our HAM Fixed income strategy here.