A veteran bond operator shares an alpha-generating strategy for dropping yields and muted stock-market returns

Getty Images; Jenny Chang-Rodriguez/BI

• Interest rates and stock returns are expected to decline, impacting investment strategies.
• Historically, stocks and bonds have alternated in performance, affecting portfolio decisions.
• Credit markets face challenges, but opportunities exist in corporate bonds and cheap optionality.

A diversified investing strategy means a split between stocks and bonds, at minimum. But for the better part of the last two decades, interest rates were near zero...