How We Invest
Our Active 360° Fixed Income Approach
We believe our active fixed income approach is key to navigating today's challenging bond market and adding long-term value. Our fixed income investment process combines collective expertise, long-term discipline and risk management to capitalize on changing market dynamics.
The fixed income investment team works closely with the equity and quantitative teams, sharing information and debating ideas. We assess the opportunity set as it changes and position our strategies’ holdings, for the long-term, which benefit from durable credit fundamentals and attractive valuations. We take on risk intentionally when we believe we are being compensated appropriately and reduce it when we don’t.
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The Big Mac
- Institutions & Consultants
- Insights
- Fixed Income
The Big Mac
A periodic global fixed income note that discusses relevant topics across bond markets and the global macro environment
The Big Mac | READJanuary 10, 2024The Big Mac on Fixed Income Allocation: FIFOMO
In this edition of the Big Mac, we discuss how the Fixed Income Fear Of Missing Out (FIFOMO) is going to be the new fear that fixed income investors will soon be facing.
The Big Mac | READOctober 12, 2023The Big Mac on Cash Allocation: Time to Retire the CD Player*
With the federal funds rate at or near peak levels, we believe that cash is likely to start underperforming credit in the period ahead. We favor deploying some credit risk as an attractive alternative to a cash allocation.
The Big Mac | READJuly 6, 2023The Big Mac on Macro Regimes: The Market Paradigm Shift
The prevailing macro regime, the “fear of the Fed,” is likely to end in the near future. A shift away from it should bring better prospects for fixed income returns, and in our view it may be time to consider raising allocations to fixed income.
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Macro Talking Points
Macro Talking Points
Weekly global fixed income analysis through a macroeconomic lens
Macro Talking Points | READApril 22, 2024Macro Talking Points - Week of 22 April 2024
Global fixed income market analysis through a macroeconomic lens.
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Fixed Income Insights
Fixed Income Insights
Fixed income market and asset class analysis, positioninig, and other perspectives from across MFS
Macro Talking Points | READApril 22, 2024Macro Talking Points - Week of 22 April 2024
Global fixed income market analysis through a macroeconomic lens.
READApril 8, 2024Macro Talking Points - Week of 8 April 2024
Global fixed income market analysis through a macroeconomic lens.
Market Insight | READMarch 28, 2024Drugs Over Diet: Recent Advances in the Weight Loss Drug Category
We provide a high-level overview of recent developments in the weight loss drug category and explore how they may impact other industries. These highly effective drugs were born out of research to treat diabetes but have additional benefits.
Fixed Income Insight | READMarch 15, 2024Taxable Municipal Bonds May Hold the Key to Better LDI Portfolios
With deeper representation across the long duration spectrum, lower historical default rates and higher yields relative to comparable quality corporate bonds, taxable municipal bonds can complement and potentially enhance LDI portfolios.
Fixed Income Insight | READMarch 14, 2024European High Yield: High Yield, High Expectations
Outlines why we believe European High Yield is an asset class that deserves to be on investors’ radar given its attractive valuation characteristics, fundamental strength, favorable technicals and long-term performance record.
Fixed Income Insight | READFebruary 8, 2024Fixed Income Under the Spotlight: Three Key Themes for 2024
Co-CIO of Fixed Income Pilar Gomez-Bravo, addresses many of the pressing issues facing today’s bond investors including the fight between growth and inflation, building portfolios for an uncertain world and fragility.
Fixed Income Insight | WatchFebruary 2, 2024MFS® Emerging Markets Debt Strategy - Quarterly Portfolio Update | Transcript
Katrina Uzun, Institutional Portfolio Manager, shares the team's thoughts on emerging markets and provides a quarterly update on the Emerging Markets Debt Strategy.Fixed Income Insight | READJanuary 18, 2024Expanding Horizons: The Case for Global Bonds in Liability-Driven Investing
Global investment-grade bonds can potentially complement traditional liability-driven investment (LDI) strategies, bringing the potential for attractive risk-adjusted returns while still maintaining critical liability hedging characteristics.
Fixed Income Insight | READNovember 10, 2023Fixed Income Investing in US Recessions
We examine how, during economic downturns, fixed income has offered diversification benefits and reduced the volatility of portfolios that include risk assets such as equities.
The Big Mac | READOctober 12, 2023The Big Mac on Cash Allocation: Time to Retire the CD Player*
With the federal funds rate at or near peak levels, we believe that cash is likely to start underperforming credit in the period ahead. We favor deploying some credit risk as an attractive alternative to a cash allocation.
General Insight | READAugust 24, 2023An Active Approach to Investing in Taxable Municipal Bonds
We examine the strategic case for investing in the taxable municipal bond asset class and present the argument for active investment to seek alpha. We also review why we think it is currently an attractive time to consider an allocation to the taxable municipal market.
General Insight | READAugust 22, 2023Finding a Sweet Spot for Local Emerging Market Debt
We discuss the four stages of the typical cycle for emerging markets local debt, the fundamental framework of the marketplace, and the potential opportunity set offered to today's investors.
Fixed Income Insight | WatchAugust 17, 2023Active Management in Fixed Income: Opportunities, Risks and Investment Approach | Transcript
MFS Co-CIO Fixed Income, Pilar Gomez-Bravo, shares her views on how an active fixed income approach is key to navigating today’s challenging bond market and adding long-term value.READAugust 11, 2023Fixed Income Under the Spotlight: Five Key Questions for Investors
Co-CIO of Fixed Income Pilar Gomez-Bravo, addresses many of the pressing issues facing today's bond investors, including the risk of recession and the potential effects of China's economic slowdown.
The Big Mac | READJuly 6, 2023The Big Mac on Macro Regimes: The Market Paradigm Shift
The prevailing macro regime, the “fear of the Fed,” is likely to end in the near future. A shift away from it should bring better prospects for fixed income returns, and in our view it may be time to consider raising allocations to fixed income.
General Insight | READJune 30, 2023Fixed Income Capacity Management: Striving to Preserve Alpha Generation for Clients
Capacity management is a key component of a client-centric philosophy and an active management approach to fixed income portfolios.
General Insight | READJune 16, 2023EM Local Debt: The Stars May Soon Be Aligning
Emerging market local debt is a cyclical asset class, where each cycle is generally characterized by four stages. As we approach the fourth stage, we believe that local debt could become an attractive option for investors.
Fixed Income Insight | WatchJune 9, 2023Finding The Sweet Spot in Global Credit | Transcript
Discover why Global Credit can be a compelling asset class within the fixed income universe. MFS Co-CIO Fixed Income, Pilar Gomez-Bravo, shares her thoughts on credit markets, constructing risk, energy supply dynamics, and views on private credit.General Insight | READMay 23, 2023A Steady Ship in Stormy Waters: Fixed Income Markets in the Spotlight
While storm clouds continue to hover over the markets, this is an interesting time for investors in fixed income. Considering the uncertainties, we believe that active security selection in fixed income has the potential to provide yield, diversification and risk management.
Fixed Income Insight | WatchMay 16, 2023Navigating ESG in Fixed Income | Transcript
MFS Co-CIO Fixed Income, Pilar Gomez-Bravo, discusses ESG integration in fixed income, with a focus on engaging with governments, investing in green bonds and avoiding greenwashing.Fixed Income Insight | WatchApril 28, 2023Macro Views on Global Fixed Income | Transcript
A conversation with MFS Co-CIO of Fixed Income, Pilar Gomez-Bravo, on current macro factors impacting global fixed income markets.General Insight | READApril 6, 2023MFS Fixed Income History
Provides insight on MFS's deep history and expertise fixed income as well as its risk managed approach and Global Research Platform.
All Angles | LISTENJuly 20, 2023Governance Matters: Assessing Sustainability in Emerging Market Debt | Transcript
Do emerging and developed market bonds differ when it comes to evaluating sustainability? In Episode 5 of the All Angles podcast, Vish Hindocha and Mahesh Jayakumar discuss how they assess materiality when deciding whether or not to invest in a country’s bonds and share their empirical analysis of the impact of different factors on fixed income returns.
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Related Strategies
MFS® Fixed Income Strategies
In today's markets, the ability to navigate changing dynamics is, in our view, critical to pursuing clients' objectives. We have a broad lineup of actively managed fixed income strategies designed to meet the unique needs of institutional investors. Below are highlights of our fixed income capabilities.
Core/Aggregate
US
Strategy Strategy Fact Sheet(s) MFS® Limited Maturity Fixed Income USD, EUR MFS® U.S. Core Fixed Income USD MFS® U.S. Core Plus Fixed Income USD MFS® U.S. Opportunistic Fixed Income USD Global
Strategy Strategy Fact Sheet(s) MFS® Global Aggregate Core USD MFS® Global Aggregate Core Plus USD
MFS® Global Aggregate Opportunistic USD Hedged USD, GBP Canadian
Strategy Strategy Fact Sheet(s) MFS® Canadian Fixed Income CAD MFS® Canadian Core Plus Fixed Income CAD MFS® Canadian Money Market CAD MFS® Canadian Long Term Fixed Income CAD MFS® Canadian Long Plus Fixed Income CAD MFS® Canadian Short Term Fixed Income CAD Corporate
Strategy Strategy Fact Sheet(s) MFS® Global Credit USD MFS® Global Investment Grade Credit USD MFS® Global High Yield USD MFS® U.S. Credit USD MFS® U.S. Long Duration Credit USD Emerging Markets
Strategy Strategy Fact Sheet(s) MFS® Emerging Markets Debt Diversified USD MFS® Emerging Markets Local Currency Debt USD MFS® Emerging Markets Corporate Debt USD MFS® Emerging Markets Debt Opportunities USD MFS has a wide range of global fixed income capabilities designed to meet the institutional investor's unique objectives. In addition to the related strategies listed on this page, MFS also offers a variety of Government/Municipal strategies.
- Institutions & Consultants
- Insights
- Fixed Income
The Big Mac
A periodic global fixed income note that discusses relevant topics across bond markets and the global macro environment
The Big Mac on Fixed Income Allocation: FIFOMO
In this edition of the Big Mac, we discuss how the Fixed Income Fear Of Missing Out (FIFOMO) is going to be the new fear that fixed income investors will soon be facing.
The Big Mac on Cash Allocation: Time to Retire the CD Player*
With the federal funds rate at or near peak levels, we believe that cash is likely to start underperforming credit in the period ahead. We favor deploying some credit risk as an attractive alternative to a cash allocation.
The Big Mac on Macro Regimes: The Market Paradigm Shift
The prevailing macro regime, the “fear of the Fed,” is likely to end in the near future. A shift away from it should bring better prospects for fixed income returns, and in our view it may be time to consider raising allocations to fixed income.
Macro Talking Points
Weekly global fixed income analysis through a macroeconomic lens
Macro Talking Points - Week of 22 April 2024
Global fixed income market analysis through a macroeconomic lens.
Fixed Income Insights
Fixed income market and asset class analysis, positioninig, and other perspectives from across MFS
Macro Talking Points - Week of 22 April 2024
Global fixed income market analysis through a macroeconomic lens.
Macro Talking Points - Week of 8 April 2024
Global fixed income market analysis through a macroeconomic lens.
Drugs Over Diet: Recent Advances in the Weight Loss Drug Category
We provide a high-level overview of recent developments in the weight loss drug category and explore how they may impact other industries. These highly effective drugs were born out of research to treat diabetes but have additional benefits.
Taxable Municipal Bonds May Hold the Key to Better LDI Portfolios
With deeper representation across the long duration spectrum, lower historical default rates and higher yields relative to comparable quality corporate bonds, taxable municipal bonds can complement and potentially enhance LDI portfolios.
European High Yield: High Yield, High Expectations
Outlines why we believe European High Yield is an asset class that deserves to be on investors’ radar given its attractive valuation characteristics, fundamental strength, favorable technicals and long-term performance record.
Fixed Income Under the Spotlight: Three Key Themes for 2024
Co-CIO of Fixed Income Pilar Gomez-Bravo, addresses many of the pressing issues facing today’s bond investors including the fight between growth and inflation, building portfolios for an uncertain world and fragility.
MFS® Emerging Markets Debt Strategy - Quarterly Portfolio Update | Transcript
Expanding Horizons: The Case for Global Bonds in Liability-Driven Investing
Global investment-grade bonds can potentially complement traditional liability-driven investment (LDI) strategies, bringing the potential for attractive risk-adjusted returns while still maintaining critical liability hedging characteristics.
Fixed Income Investing in US Recessions
We examine how, during economic downturns, fixed income has offered diversification benefits and reduced the volatility of portfolios that include risk assets such as equities.
The Big Mac on Cash Allocation: Time to Retire the CD Player*
With the federal funds rate at or near peak levels, we believe that cash is likely to start underperforming credit in the period ahead. We favor deploying some credit risk as an attractive alternative to a cash allocation.
An Active Approach to Investing in Taxable Municipal Bonds
We examine the strategic case for investing in the taxable municipal bond asset class and present the argument for active investment to seek alpha. We also review why we think it is currently an attractive time to consider an allocation to the taxable municipal market.
Finding a Sweet Spot for Local Emerging Market Debt
We discuss the four stages of the typical cycle for emerging markets local debt, the fundamental framework of the marketplace, and the potential opportunity set offered to today's investors.
Active Management in Fixed Income: Opportunities, Risks and Investment Approach | Transcript
Fixed Income Under the Spotlight: Five Key Questions for Investors
Co-CIO of Fixed Income Pilar Gomez-Bravo, addresses many of the pressing issues facing today's bond investors, including the risk of recession and the potential effects of China's economic slowdown.
The Big Mac on Macro Regimes: The Market Paradigm Shift
The prevailing macro regime, the “fear of the Fed,” is likely to end in the near future. A shift away from it should bring better prospects for fixed income returns, and in our view it may be time to consider raising allocations to fixed income.
Fixed Income Capacity Management: Striving to Preserve Alpha Generation for Clients
Capacity management is a key component of a client-centric philosophy and an active management approach to fixed income portfolios.
EM Local Debt: The Stars May Soon Be Aligning
Emerging market local debt is a cyclical asset class, where each cycle is generally characterized by four stages. As we approach the fourth stage, we believe that local debt could become an attractive option for investors.
Finding The Sweet Spot in Global Credit | Transcript
A Steady Ship in Stormy Waters: Fixed Income Markets in the Spotlight
While storm clouds continue to hover over the markets, this is an interesting time for investors in fixed income. Considering the uncertainties, we believe that active security selection in fixed income has the potential to provide yield, diversification and risk management.
Navigating ESG in Fixed Income | Transcript
Macro Views on Global Fixed Income | Transcript
MFS Fixed Income History
Provides insight on MFS's deep history and expertise fixed income as well as its risk managed approach and Global Research Platform.
Governance Matters: Assessing Sustainability in Emerging Market Debt | Transcript
MFS® Fixed Income Strategies
In today's markets, the ability to navigate changing dynamics is, in our view, critical to pursuing clients' objectives. We have a broad lineup of actively managed fixed income strategies designed to meet the unique needs of institutional investors. Below are highlights of our fixed income capabilities.
Core/Aggregate
US
Strategy | Strategy Fact Sheet(s) |
---|---|
MFS® Limited Maturity Fixed Income | USD, EUR |
MFS® U.S. Core Fixed Income | USD |
MFS® U.S. Core Plus Fixed Income | USD |
MFS® U.S. Opportunistic Fixed Income | USD |
Global
Strategy | Strategy Fact Sheet(s) |
---|---|
MFS® Global Aggregate Core | USD |
MFS® Global Aggregate Core Plus | USD |
MFS® Global Aggregate Opportunistic USD Hedged | USD, GBP |
Canadian
Strategy | Strategy Fact Sheet(s) |
---|---|
MFS® Canadian Fixed Income | CAD |
MFS® Canadian Core Plus Fixed Income | CAD |
MFS® Canadian Money Market | CAD |
MFS® Canadian Long Term Fixed Income | CAD |
MFS® Canadian Long Plus Fixed Income | CAD |
MFS® Canadian Short Term Fixed Income | CAD |
Corporate
Strategy | Strategy Fact Sheet(s) |
---|---|
MFS® Global Credit | USD |
MFS® Global Investment Grade Credit | USD |
MFS® Global High Yield | USD |
MFS® U.S. Credit | USD |
MFS® U.S. Long Duration Credit | USD |
Emerging Markets
Strategy | Strategy Fact Sheet(s) |
---|---|
MFS® Emerging Markets Debt Diversified | USD |
MFS® Emerging Markets Local Currency Debt | USD |
MFS® Emerging Markets Corporate Debt | USD |
MFS® Emerging Markets Debt Opportunities | USD |
MFS has a wide range of global fixed income capabilities designed to meet the institutional investor's unique objectives. In addition to the related strategies listed on this page, MFS also offers a variety of Government/Municipal strategies.