Following a 9-month hiatus in its rate-cutting cycle, the Federal Reserve (Fed) recently resumed monetary easing, with cuts in September and October 2025 in response to signs of a softening labor market.

On the back of recent cooling in economic growth, an uptick in unemployment, and moderating inflation, the Federal Reserve (Fed) looks set to begin its rate-cutting cycle at its September meeting.

In an environment where interest rates are low and the risk of higher Treasury yields has risen, Portfolio Managers from Janus Henderson Investors discuss how allocations to AAA rated CLOs may help investors diversify a traditional fixed income portfolio, offering lower volatility, higher credit-quality and less sensitivity to any rise in interest rates.