Invesco sees opportunities in global bonds for income investors

Invesco says income investors may find attractive yields by looking beyond U.S. bonds, as central banks around the world have moved in different directions on interest rates. The firm says that policy divergence has created opportunities in crossmarket fixedincome trades, especially in countries such as the United Kingdom, Brazil, South Africa, Hungary, and the Czech Republic. Kristina Campmany, senior portfolio manager for global debt at Invesco, said the approach is reflected in the Invesco Flexible Income ETF, which launched in February and can hold as much as 40% of its assets in international securities. The ETF’s 30day yield is 4.93%, compared with similar U.S.focused bond funds that have slightly lower yields and lower fees. Invesco also said it prefers securitized products in the U.S., such as mortgagebacked and assetbacked securities, because of their valuations and characteristics relative to corporate bonds.