Embrace Fixed Income

It’s good news for bond investors: yields are likely to stay higher for longer

 

Thrive in today's high-rate environment by applying strategies that match your goal

 

Diversify and balance risks in a late-stage credit cycle

Market Forces

You believe economic growth will slow and we may enter a recession but understand that volatility is temporary and income is the ultimate goal.

What You Should Consider

  • High-quality bonds and risk-off assets for your portfolio
  • Extending duration to benefit your portfolio as the economy slows and interest rates decline
  • A diversified, active portfolio balances interest-rate and credit risk and can deliver a high level of income with strong downside mitigation.

SHORT-DURATION BONDS
AB Short Duration High Yield Portfolio
AB Ultra Short Income ETF (YEAR)
 

CORE
AB Income Fund
AB Global Bond Fund
AB Corporate Bond ETF (EYEG)
AB Core Plus Bond ETF (CPLS)

SHORT-DURATION MUNICIPALS
AB Tax Aware Short Duration ETF (TAFI)


CORE MUNICIPALS
AB National Muni Income Portfolio
AB Municipal High Quality Portfolio (SMA)
AB Municipal Income Portfolio (SMA)
AB Tax Aware Fixed Income Portfolio (SMA)

Seek to capture attractive yield before rates fall

Market Forces

You believe economic growth remains below trend and slowly converges to normal but want to capture yield while rates are high.

What You Should Consider

  • Bonds and risk assets
  • Despite economic uncertainties, there are many options for strong income and return potential across both government bonds and credit-sensitive sectors
  • Hold credit. Corporate fundamentals remain strong and yields are higher today than they’ve been in years 

HIGH YIELD
AB High Yield ETF (HYFI)
AB High Income Fund

HIGH YIELD MUNICIPALS
AB High Income Muni Portfolio

CORE MUNICIPALS
AB Tax-Aware Fixed Income Opportunities Portfolio

Market timing is next to impossible. Avoid missed opportunities by being fully invested.

Market Forces

You believe economic growth will slow and a recession is likely but want the long-term return potential of a fully invested portfolio.

What You Should Consider

  • Get invested. Just adding a small increase in duration holds a defensive position but helps increase return potential.
  • A diversified “barbell” strategy that balances interest-rate and credit risk allows investors to lean one way or the other at any given moment—an approach that can deliver a high level of income with strong downside mitigation.
  • If a recession starts to look likely, investors will want to maintain liquidity and a healthy dose of duration. Government bonds do an excellent job of providing both.

SHORT-DURATION BONDS
AB Ultra Short Income ETF (YEAR)

 

CORE
AB Global Bond Fund

SHORT-DURATION MUNICIPALS
AB Tax Aware Short Duration ETF (TAFI)
AB Muni High Quality Short Duration Portfolio

CORE MUNICIPALS
AB Muni High Quality Portfolio (SMA)

 

Related Insights

Investment Insights
It’s Time to Say Goodbye to ‘T-Bill and Chill’

Investors who wait too long to get off the sidelines may find they’ve missed out.
Read More 
Portfolio Manager Perspectives
A Note from the AB Fixed Income Trading Desk

Thoughts from Our Senior Portfolio Managers.
Read More 
Whitepaper
Investment Strategies for Generating Efficient Income

Bond yields are up—that’s good news for income investors, but secular forces still pose headwinds for inflation-adjusted returns.
Read More 
 

Important Information

AB ETFs are distributed by Foreside Fund Services, LLC. Foreside is not related to AB or its affiliates.

Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

There is no assurance that a separately managed account will achieve its investment objective. Separately managed accounts are subject to market risk and the market values of securities owned will fluctuate so that your investment, when redeemed, may be worth more or less than its original cost.

Investing in ETFs involves risks, including loss of principal.

Market Risk: The market values of the portfolio’s holdings rise and fall from day to day, so investments may lose value. Interest-Rate Risk: As interest rates rise, bond prices fall and vice versa—long-term securities tend to rise and fall more than short-term securities. Credit Risk: A bond’s credit rating reflects the issuer’s ability to make timely payments of interest or principal—the lower the rating, the higher the risk of default. If the issuer’s financial strength deteriorates, the issuer’s rating may be lowered and the bond’s value may decline. Inflation Risk: Prices for goods and services tend to rise over time, which may erode the purchasing power of investments. Foreign (Non-US) Risk: Non-US securities may be more volatile because of political, regulatory, market and economic uncertainties associated with such securities. Fluctuations in currency exchange rates may negatively affect the value of the investment or reduce returns. These risks are magnified in emerging or developing markets. Derivatives Risk: Investing in derivative instruments such as options, futures, forwards or swaps can be riskier than traditional investments, and may be more volatile, especially in a down market. Leverage Risk: Trying to enhance investment returns by borrowing money or using other leverage tools—magnify both gains and losses, resulting in greater volatility. Below-Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations. Bond Risk: The Fund is subject to the same risks as the underlying bonds in the portfolio, such as credit, prepayment, call and interest-rate risk. As interest rates rise, the value of bond prices will decline. Municipal Market Risk: Economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities or the rights of investors in these securities may negatively impact the yield or value of a municipal security. Tax Risk: The US government and Congress may periodically consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income shareholders receive from the Fund by increasing taxes on that income. New Fund Risk: The Fund is recently organized, giving prospective investors a limited track record on which to base their investment decision. Investment Securities Risk: To the extent the Fund invests in other funds, shareholders will bear layers of asset-based expenses, which could reduce returns. Interest-Rate Risk: As interest rates rise, bond prices fall and vice versa; long-term securities tend to rise and fall more than short-term securities.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the manager of the funds. 

AB mutual funds may be offered only to persons in the United States and by way of a prospectus. This website should not be considered a solicitation or offering of any investment products or services to investors residing outside of the United States.

 

Investment Products Offered: Are Not FDIC Insured | May Lose Value | Are Not Bank Guaranteed