[Verse 1] Markets shift like tides across the trading floor Government bonds today, corporate tomorrow When interest rates climb high, duration takes a hit Short-term treasuries become your safety kit Credit spreads can widen when the fear sets in That's when quality pays and junk bonds lose their grin [Chorus] Rotate, allocate, tactical and smart S-E-C-T-O-R, know each bond's heart High-grade to distressed, follow the spread Credit positioning keeps portfolios fed Rotate, allocate, ride the market wave Relative value is the game we play [Verse 2] Investment grade shines when uncertainty grows While high-yield stumbles as recession shows Municipal bonds dance to their own local beat Tax advantages make their returns sweet Mortgage-backed securities love stable rates But prepayment risk determines their fates [Chorus] Rotate, allocate, tactical and smart S-E-C-T-O-R, know each bond's heart High-grade to distressed, follow the spread Credit positioning keeps portfolios fed Rotate, allocate, ride the market wave Relative value is the game we play [Bridge] Duration risk and credit risk Two dimensions on your list Yield curve steepens, yield curve flats Sector rotation, where it's at AAA to BB minus Market timing, stars align us [Verse 3] Emerging markets offer yield but bring the risk Currency hedging keeps your returns crisp When default rates spike, move defensive quick Agency bonds and treasuries do the trick Active management means you never sleep Scanning for mispricing, profits you can reap [Chorus] Rotate, allocate, tactical and smart S-E-C-T-O-R, know each bond's heart High-grade to distressed, follow the spread Credit positioning keeps portfolios fed Rotate, allocate, ride the market wave Relative value is the game we play [Outro] From triple-A rated down to distressed debt Sector rotation, place your smartest bet
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