economy
Income investors should add global bonds, Invesco says. Where the firm is finding solid yields
The Invesco Flexible Income ETF has roughly 40% of its holdings in international bonds.
TL;DR
- Central bank policy divergence globally offers attractive yield opportunities in fixed income outside the U.S.
- Invesco's Flexible Income ETF (FLXI) holds up to 40% in international assets.
- Emerging markets like Brazil and South Africa are attractive due to aggressive rate hikes post-Covid, allowing more room for easing.
- The UK and Central/Eastern European markets (Hungary, Czech Republic) are also seen as having value.
- In the U.S., Invesco prefers securitized products (floating-rate assets, MBS, ABS) over corporate bonds.
- Securitized products are considered less impacted by potential economic changes from artificial intelligence.