The future of fixed income

David Furey, Global Head Client Portfolio Management, Fixed Income Solutions, State Street Investment Management

Fixed income has been transformed by advances in market structure, trading technology, and portfolio design-and the pace of change continues to accelerate. These developments are expanding what the asset class can deliver for institutional investors.

While fixed income has long played essential roles, including generating income, hedging equities, and mitigating downside risk, today it is becoming a cornerstone of outcome-oriented investing. Enhanced tools and more precise building blocks now enable investors to address challenges such as matching complex liabilities, navigating inflation, and managing duration and credit risks, allowing for more tailored, client-driven exposures.

This evolution is still in its early stages, and its importance will only grow as institutions seek more precision, resilience and efficiency in their portfolios. To fully harness fixed income’s expanding capabilities, asset managers need the scale to invest in technology and market access, the skill to interpret data and design solutions, and the experience to apply them consistently across market cycles.

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