Here are three reasons why you should listen to this episode:

1. Discover why the fixed income asset class is not just the “quiet” side of your portfolio and why everyone should have a portion in their portfolios, offering attractive yields, stability, and protection against market volatility.
2. Learn how investment-grade bond funds and laddering strategies can help you manage reinvestment risk, match your investments to your cash flow needs, and diversify beyond traditional options.
3. Get actionable advice on putting idle cash to work, protecting your purchasing power from inflation, and why timing the market is less effective than having a disciplined fixed income strategy aligned with your short- and long-term goals.

Resources

• CIBC's "Smart Advice" Podcast and Website - Website | Apple Podcast | Spotify
• Visit CIBC for more Smart Advice
• Aaron Young: LinkedIn

Episode Highlights

[00:20 ] Introduction to Fixed Income Strategy

• Fixed income plays a steady role in building and protecting wealth, even though it rarely makes headlines.
• These investments balance portfolios, preserve capital, and provide flexibility for both short- and long-term goals.
• The episode features Aaron Young, Executive Director and Head of Client Portfolio Management at CIBC Global Asset Management.
• With over 15 years of experience, he offers insights into why a fixed income strategy matters now more than ever.

[02:12 ] Current State of the Fixed Income Market

• Fixed income is entering what experts call a “golden age,” offering attractive yields and renewed importance in portfolios.

[03:06 ] Aaron: “Right now, fixed income is in a bit of a golden age, for lack of a better term. What I mean by that is we've hit a nice balance point in fixed income markets where this asset class can generate a really attractive income potential for clients, and it can do so while also regaining a bit of that role of hedging risk.”

• Yields, once near zero, have returned to healthier levels, restoring the income investors expect from this asset class.
• Global factors like trade policies, tariffs, and geopolitical shifts continue to shape the outlook for bonds.
• Active management becomes crucial in this environment, turning volatility into opportunities for added returns.

[05:56 ] The Role of Fixed Income in Canadian Portfolios

• Diversification across asset classes is essential, with fixed income providing a counterbalance to equities and alternatives.
• Bonds protect capital, generate predictable coupons, and reduce portfolio volatility in uncertain markets.
• Capital appreciation is another underappreciated benefit, as mispriced bonds can deliver strong upside potential.

[06:58 ] Aaron: “I would say for any level of investor, you should have a portion of fixed income in your portfolio for diversification, and not diversification such as a sector or holding a single stock versus other companies. Its diversification of where your risk and return comes from.”

• The role of fixed income shifts depending on investor needs, risk tolerance, and life stage.

[08:59 ] Innovative Fixed Income Solutions & Laddering

• Beyond GICs, investment-grade bond funds offer predictable returns with the added benefits of interest and price appreciation.
• These funds provide tools to align investments with cash flow needs while diversifying risks.

[10:45 ] Aaron: “The investment grade bond funds really was a focus on, how do we build something that's similar to a GIC in a lot of respects, in terms of target maturity date, I know I'm going to get my capital back, not the same risk profile, but also not going out and buying really high risk bonds, where the prices fluctuate quite a bit day to day, we buy governments and really solid large cap corporate bond issues.”

• Laddering, or staggering maturities, helps manage reinvestment risk and interest rate fluctuations.
• Together, these strategies expand fixed income options, giving investors greater flexibility than traditional choices alone.

[13:03 ] Investment Strategies for Short-Term Goals

• A fixed income strategy can align with specific cash flow needs such as saving for education, a home, or a cottage.
• Investment-grade bond funds allow investors to match maturities to future liabilities with confidence.
• This approach ensures capital is available when needed while still generating income along the way.
• By protecting against reinvestment risk, bond funds create stability without leaving money idle.

[15:30 ] The Importance of Being Invested

• Holding excess cash on the sidelines exposes investors to the silent erosion of inflation.
• Opportunity cost can be significant, as sitting still means missing out on steady income streams.
• Timing the market is notoriously difficult, even for professional investors with advanced tools.
• Fixed income serves as a bridge between cash and equities, offering stability while keeping money productive.

[19:48 ] Agility in Fixed Income Management

• Fixed income portfolios can be adjusted in real time to capture opportunities and manage risks.
• A dedicated team of experts at CIBC Global Asset Management specializes in areas like government bonds, corporate credit, and global rates.
• Sharing ideas across disciplines ensures portfolios benefit from the best thinking across the firm.
• Market inefficiencies in bonds create opportunities for active managers to add consistent long-term value.

[22:15 ] Behind the Curtain: Inside “Bond Land”

• Fixed income offers multiple levers to manage risk and generate returns, from interest rates to credit exposure.
• Large institutional strategies, such as liability-driven investing, inspire approaches suitable for individual investors.
• The market’s inefficiencies, like off-exchange , provide advantages for skilled active managers.
• Agility and collaboration within the team enable CIBC to adapt quickly beyond headlines or central bank announcements.

[27:05 ] Building Your Fixed Income Assets

• A fixed income strategy remains a vital part of any portfolio, providing stability, income, and diversification.
• Bonds can be tailored to meet both short-term cash flow needs and long-term growth objectives.
• Aaron Young emphasizes the importance of viewing fixed income as a flexible tool for achieving financial outcomes.
• His closing message reinforces that bonds will always have a rightful place in helping Canadians reach their goals.

About Aaron Young

Aaron Young is the Executive Director and Head of Client Portfolio Management at CIBC Global Asset Management. With more than 15 years of experience in fixed income markets, he has dedicated his career to helping global investors understand the power of bonds and income-generating investments. His work spans from guiding individual investors to managing portfolios for some of the country’s largest institutions, including pension plans, foundations, and endowments. Aaron specializes in strategies that balance income generation, capital preservation, and long-term growth in both traditional and alternative fixed income strategies.

Known for his passion for making fixed income accessible, Aaron brings clarity to a part of investing that is often overlooked. He believes bonds are not just the “quiet side” of a portfolio, but a dynamic tool that can stabilize wealth, reduce volatility, and create new opportunities for investors. Through his expertise, he empowers Canadians to look beyond traditional GICs and embrace innovative solutions that align with their financial goals.

Connect with Aaron Young on his LinkedIn.

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