Fixed Income Alternatives

What are alternative investments?

Broadly speaking, alternatives are investments in assets other than stocks, bonds and cash (commodities, for example) or investments using strategies that go beyond traditional ways of investing, such as long/short or arbitrage strategies. Because alternatives tend to behave differently than typical stock and bond investments, adding them to a portfolio may provide broader diversification, reduce risk, and enhance returns. Investing in private companies offers the potential for enhanced diversification and returns, since the factors that drive these markets are different from those that drive the public equity markets.