Investing Through Inflation

In an environment characterized by decades-high inflation and rising rates, some of the most compelling opportunities are likely to be in asset classes that are naturally positioned to survive—and maybe even thrive.

Floating-Rate Assets
SHORT-DURATION SOLUTIONS
INFLATION BENEFICIARIES

 

I N F L A T I O N  T O O L K I T

Floating-Rate Assets

Assets with floating-rate coupons can provide a natural hedge against rising rates, such as broadly syndicated and middle market loans, as well as CLOs—which offer the added benefit of structural protections.

 

I N F L A T I O N  T O O L K I T

Short-Duration Solutions

Short-duration strategies, from global high yield bonds to short-dated bonds in developed and emerging markets, look compelling in a rising rate environment—given that they have lower duration risk and are therefore less sensitive to changes in rates.

 

I N F L A T I O N  T O O L K I T

Inflation Beneficiaries

A number of sectors have historically been more resilient than others in an inflationary environment. Real estate assets, and companies that produce or distribute natural resources and commodities, can benefit from a rise in prices.

Featured Strategies

Investments in the listed asset classes involve risks, including the potential for default, low recovery, and low liquidity, all of which can result in a loss of a substantial portion of the investment. Investing in non-US securities may also involve a higher risk.