According to Securities Times APP, Allianz Investment Senior Product Specialist Chen Jiaying mentioned that as inflation continues to decline, the Fed has begun an interest rate cutting cycle. Many investors should consider locking in higher returns when interest rates are high. Short-term high yield bonds in the United States can provide investors with an attractive option. The main reason is that the yield of short-term high yield bonds is higher than that of high-rated bonds, with relatively lower volatility. Moreover, companies show higher predictability in their short-term financial performance, providing investors with a more stable income choice.

Short-term high yield bonds refer to bonds with a maturity of less than five years, attracting investors with a good balance between risk and return. Despite being called high yield bonds, short-term bonds generally have lower interest rate risk than longer-term bonds. Chen Jiaying explained that due to the relatively short maturity of short-term bonds, investors can more effectively predict the company's cash flow and financial condition, making the trend of short-term bonds relatively stable.

In the current environment of continued economic growth in the United States, coupled with easing indicators in employment and inflation, the market for high yield bonds appears particularly favorable. Currently, the yield in the U.S. high yield market exceeds 7%, default rates have consistently been below long-term average levels. Chen Jiaying mentioned that this provides support for the performance of short-term high yield bonds. Compared to other regions, U.S. high yield corporate bond returns can provide investors with relatively higher visible returns.

Currently, Chen Jiaying and her team manage the Allianz US Short Duration High Income Bond Fund, focusing on investing in high-yielding short-term bonds. She pointed out that our goal is to provide investors with stable coupon income, rather than seeking short-term capital appreciation. This strategy can help investors achieve relatively stable returns in uncertain markets.

When discussing investment strategies, Chen Jiaying emphasized the importance of diversification. "Our short-term high yield bond fund avoids overconcentration in individual industries or companies to maintain good diversification," she said. The fund management team closely monitors the cash flow and financial condition of companies to select those with stable financial performance.

In addition to the short duration bond strategy, investors may also consider another diversified asset - income and growth strategy, which can provide investors with a one-stop choice for income and growth in parallel. The diversified asset income and growth strategy can focus on high yield bonds, convertible bonds, and stocks in the U.S. market, aiming to obtain coupon and dividend income from these assets and distribute realized profits to investors.

She emphasized that the volatility of diversified bond strategy is lower than that of pure stocks strategy, providing better risk management and stable dividend income, while capturing the potential growth of the US stock market, suitable for investors deploying in the currently expensive US market to achieve their ideal.风险回报比。

Chen Jiaying further pointed out that the above strategies are not based on predicting market trends. The focus is on selecting companies with profit growth and the ability to capture future market share, or choosing some companies with excellent financial fundamentals from an asset-liability perspective. In the case of the US market, high-quality companies still have a high probability of achieving profit growth in the future, while small and medium-sized enterprises benefit from interest rate cuts, providing good long-term support for US assets.