Invesco Income Fund Q1 2026 Commentary
Invesco Income Fund Class A shares reported a positive absolute return for the first quarter of 2026, despite underperforming against the Bloomberg U.S. Securitized MBS/ABS/CMBS Index. The yield curve experienced a notable shift, with increases in short- and intermediate-maturity Treasury yields driving the changes from the previous quarter. During this period, structured credit outperformed both Treasuries and investment-grade corporate bonds. Invesco adjusted its strategy by increasing the fund's allocation to Agency mortgage-backed securities (MBS) and adding non-Agency residential mortgage-backed securities (RMBS). The firm maintains that a neutral allocation to Agency MBS is suitable, as valuations have become more attractive while remaining sensitive to interest rate fluctuations.
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