In a low yield environment, generating returns from fixed income can be challenging. However, there are still strategies investors can employ to maximize their returns. One such strategy is to diversify their fixed income portfolio across different sectors and geographies, and to consider alternative fixed income investments.

Amid the COVID-19 pandemic, bond markets are exhibiting extreme and sometimes counter-intuitive behaviors. With government bonds selling off at the same time as riskier assets, the market is telling you that lower rates are not the answer. Although opportunities have arisen in fixed income, investors should be wary of passive exposure to the high yield market and take a selective and cautious approach to separate the ongoing risks from the opportunities.