Here’s the best way to invest in bonds for the long term, according to these five-star portfolio managers

A fixed-income team at Morgan Stanley points to two less conventional corners of the bond market as contributors to its fund's returns: distressed debt and frontier local-market investing. Distressed debt refers to bonds issued by companies or governments under financial stress, often trading well below face value. Frontier local-market investing means buying bonds denominated in the currencies of smaller or less-developed economies.

Both approaches sit at the higher-risk end of fixed income. Distressed debt can offer substantial upside if an issuer recovers, but defaults can wipe out principal. Frontier local-currency bonds add currency risk on top of credit risk, meaning returns depend on both the issuer's health and exchange-rate moves.

For long-term bond investors, the takeaway is less about copying a specific strategy than understanding how risk is being sourced. It is worth watching how such positions perform across credit cycles, how liquid they remain in stressed markets, and whether the yield premium adequately compensates for the added uncertainty. Diversification and a clear view of one's own risk tolerance remain central.