Many were uncertain what direction the central bank would go with interest rates. Advisors and investors may pivot towards strategies that perform better during interest rate shifts, like active short-duration bonds. Regardless, this meeting marks a fascinating inflection point for fixed income portfolios. It invests in a variety of investment-grade bonds and other fixed income securities. Lower-duration bonds are less exposed to interest rate risks, while being able to reinvest capital into newly issued bonds and take advantage of higher rates.