Dudnick Speaks On Benefits Of Short Duration

Jim Dudnick, CFA, Director, Portfolio Manager, Allianz Global Investors met with Julie Cooling, Founder & CEO, RIA Channel to discuss his outlook on fixed income. Dudnick, Portfolio Manager of the Allianz Short Duration High Income US Fund, says investors need to be thinking about credit risk, interest rate risk, and especially liquidity rate risk when allocating to fixed income. “Benchmark driven strategies have accepted more risk over time,” explains Dudnick on the benefits of short duration. While there has been recent volatility in the bond market, and economic growth has showed signs of slowing, Dudnick’s outlook for fixed income is optimistic. “Earnings are good and companies are in position to pay off their debt,” Dudnick believes. However, Dudnick cautions investors be aware of the risk their managers are taking when determining allocation to long or short duration bonds. To learn more, head to AllianzGI.com.