Nontraditional Bond Funds Grow 6% in US as Pricey Credit Markets Spur Flexibility
Updated
Updated · Bloomberg · Jul 8
Nontraditional Bond Funds Grow 6% in US as Pricey Credit Markets Spur Flexibility
3 articles · Updated · Bloomberg · Jul 8
Summary
US nontraditional bond funds have expanded about 6% this year and 18% since the end of 2024, marking a revival for strategies that can shift across fixed-income markets.
Lofty credit valuations are driving that growth, as investors seek funds with freedom to buy broadly when traditional bond markets offer little margin for error.
Europe shows the same turn: assets in global flexible bond funds have risen almost 10% this year.
The rebound follows a sharp hit during the 2022 inflation shock, suggesting investors are again favoring adaptable bond strategies as market pricing looks stretched.