Hedged

The Role of Bonds in a Hedged Portfolio Strategy

The Role of Bonds in a Hedged Portfolio Strategy

The need for risk management has never been more critical than in modern-day investment. One of the most effective ways to reduce risk and stabilize returns is through hedging. Hedging helps protect an investment portfolio from adverse market movements, and bonds play a pivotal role in this strategy. By offering a balanced mix of safety, income, and diversification, bonds help mitigate risks that arise from equity volatility, interest rate changes, and inflation. Types of Bonds Used in Hedged Portfolio Strategies Different bonds offer varying levels of risk and return, and understanding these differences is essential for creating a well-balanced, hedged…
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