Floating-Rate Notes as a Stabiliser in Shifting Rate Cycles

AllianzGI’s latest fixed-income insight outlines how floating-rate notes can anchor portfolio resilience as monetary policy pivots toward easing. 

• Coupons reset with policy rates, reducing duration risk and helping preserve capital when yields move abruptly.

• Corporate floaters typically offer spreads over cash, with active selection and maturity extension adding incremental return versus money-market alternatives.

• Low correlation with traditional fixed-rate debt strengthens diversification, while a resilient 2026 macro backdrop supports blending floaters with high-quality bonds.

To explore how these instruments fit into broader income and risk-management strategies, the full note provides a deeper operational view.