The industry also is expanding its exposure to stocks and alts, amid rising rates.
Former Problem Children, Agency Mortgage-Backed Securities, Make Case for Inclusion in Core Bond Portfolios
Aeon survey finds 63% will opt for residential and commercial real estate bonds, reversing a downtrend.
These bonds, undergirded by pools of home loans, benefit from the zest to nest, federal support, and other forces.
They have lower volatility and often better returns than corporates, a study by the Gundlach firm concludes.
MBS, which got flattened in March, are on the mend, but some warning signs linger. Like, what if the recession caves the housing market?