1 Source: Deutsche Bank; data as of September 30, 2026.
2 Source: Trepp; data as of September 30, 2026.
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All investments involve the risk of loss of principal.
Investments in bonds are subject to interest-rate risk and can lose principal value when interest rates rise, while they typically increase their principal values when interest rates decline. Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner, or that negative perception of the issuer’s ability to make such payments may cause the price of that bond to decline.
Strategies whose investments are concentrated in a specific industry or sector may be subject to a higher degree of risk than funds whose investments are diversified and may not be suitable for all investors.
Diversification does not guarantee investment returns and does not eliminate the risk of loss.
Past performance does not guarantee future results, which may vary. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss of principal may occur.
Spread typically is used to express the difference between two interest rates.
Mortgage-backed securities (MBS) are debt securities whose payments of principal and interest are backed by the cash flow generated by pools of mortgage loans.
Residential mortgage-backed securities (RMBS) are debt securities whose payments of principal and interest are backed by the cash flow generated by pools of residential mortgage loans.
Asset-backed securities (ABS) are debt securities whose payments of principal and interest are backed by the cash flow generated by pools of income-producing credit assets.
Commercial mortgage-backed securities (CMBS) are debt securities secured by cash flows from commercial real-estate mortgages.
Investment grade corporate bonds are debt securities issued by corporations perceived to have a relatively low risk of default.
High yield bonds (also called junk bonds) are bonds deemed by rating agencies to have a higher risk of default and thus offer investors a higher interest rate than investment grade bonds.
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