Key takeaways:
Fixed income is the only asset class that demonstrates a low to negative correlation to risk assets.
Fixed income provides highly efficient returns per unit of risk.
Fixed income is an effective tool to manage drawdown risk.
A passive manager cannot express duration, curve, sector or security...
The global financial system nearly collapsed in September 2008 when “globally significant” bank Lehman Bros failed, insurance company AIG (which insured many securities) had to be bailed out and numerous “mergers” were encouraged by panicked regulators.
The system didn’t nearly collapse early this year when Silicon Valley Bank (SVB) failed, along with...
Alternative fixed income manager CIP Asset Management (CIPAM) publish a monthly piece commenting on topics of interest for credit investors across a range of sub sectors. In this article, the company asked its investment teams why these COVID lockdowns seem different and then asked them to look beyond the...
The recent risk market rally reflects hope for a sharp recovery as economies slowly reopen. However, bond markets are once again diverging from equities and predicting a different future. Call me biased but my bet is on bonds. Bond markets are seldom incorrect in the long run. For now...
The COVID-19 pandemic upended financial markets and delivered an enormous shock to the global economy. It forced a rapid transition from late cycle into the downturn phase of the global credit cycle. Here, U.S.-based, Loomis Sayles & Company shares its analysis of the credit cycle and key factors they’re...
At FINA, we track fixed income ETFs and managed funds with our ‘Finders’ to help you narrow your search for products that might suit your portfolio.
We don’t make any recommendations as such but try to help you work out what is important.
When assessing fixed income ETF performance, the first...
The ETF market continues to develop and it’s surprising the diversification you can add in a single trade.
Diversification can be through:
The sheer number of invested securities
Various types of bonds such as fixed rate, floating rate or specific sub sectors such as government, corporate, high yield or emerging...
Paul O’Connor, Head of Multi-Asset, Janus Henderson Investors, considers the prospects for growth and interest rates as we move into the final few months of a seismic year for global financial markets.
Although we are still only three-quarters of the way through 2022, it is already clear that this will...
A major danger of assessing sustainable investing is to simplify circumstances deserving of nuance. This is particularly the case for emerging sovereign debt markets, where debt levels and GDP income show only a fraction of the story.
No country can achieve a sustainable growth pattern or an inclusive economic outcome...
Recently, global asset manager T. Rowe Price held a webinar for Australian investors. I’ve transcribed part of the presentation by Emerging Market Bonds and Global High Income Bond Strategies Portfolio Manager Samy Muaddi whose role is exclusively focussed on debt markets. He describes how the world can get itself...
