High Starting Yields Create a Strong Backdrop for Quality Fixed Income Allocation

Grounded in insights from PIMCO’s income team, the summary distills how the current rate environment is shaping portfolio construction.

• Elevated starting yields and ongoing global easing make high-quality duration and agency MBS particularly attractive relative to tight corporate credit.

• Structured credit—especially segments tied to higher-income consumers—offers resilience and compelling carry, while traditional corporate and floating-rate credit appear less rewarding.

• A steeper U.S. yield curve and fading cash yields strengthen the case for locking in medium- to long-term income opportunities.

For a deeper view into positioning and macro dynamics shaping PIMCO’s income approach, the complete report offers detailed guidance.