We had already entered uncharted territory and have since moved further into it, said Paul O'Brien, head of fixed-income strategy at Abu Dhabi Investment Authority, Abu Dhabi, referring to the broader economic environment.
We feel that the best defense in this situation is to be as diversified as possible.
ADIA one of the world's largest sovereign wealth funds is among a raft of institutional investors examining ways to diversify a debt portfolio, even within strategies.
Its high-yield portfolio, for example, can include investments not only in companies with top-tier ratings, but also in those with midtier credit ratings, Mr. O'Brien
The return for bearing duration risk is the lowest it has been in our careers.
The return for credit risk, on the other hand, is probably average, Mr. O'Brien