Dynamic global fixed income: Investing across the cycle

A Capital Group Investment Insights note by Manusha Samaraweera and Jeremy Cunningham explains why dynamic global fixed income can strengthen portfolio defence and returns as 2026 uncertainty meets stretched valuations.

• Core bonds still diversify equities, but rising developed-market debt and reduced central-bank support may weaken “traditional” safe-haven reliability.

• Flexibility across regions, sectors and currencies can unlock non-traditional defence; EM debt proved an effective diversifier during market stress in 2025.

• With structurally higher yields, bonds offer both income and renewed capital appreciation potential when risk-off conditions emerge.

Explore the full note for practical allocation levers across duration, credit, FX and relative-value opportunities.