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Posts Tagged ‘interest rates’


Unconstrained Bonds – taste the secret sauce

Page Title Unconstrained Bonds – taste the secret sauce

Unconstrained fixed income has become a popular strategy. By choosing investments that are free from benchmark constraints and that allow the managers wide-ranging discretion, investors aim to achieve consistent positive performance irrespective of a potential turn in the interest rate cycle. But in a world of low prospective returns, a successful unconstrained bond strategy needs

May 31, 2017 Categories: Investment, Investment Strategy, Markets
Global Fixed Income Survey

Fixed Income Survey Results: Spotlight on Local EMD, Rates & Credit Spreads

Last October we initiated a quarterly global fixed income survey using responses from leading bond and currency managers highlighted by our research process. This quarter’s survey included 165 responses from managers with specialisms ranging across Global Rates, Global Investment Grade Credit, Global Leveraged Credit, Securitised, US Municipal Bonds, Active Currency, and Emerging Markets (EM) including

May 12, 2017 Categories: Investment, Investment Strategy, Markets
Brexit

The Fed throwing caution to the wind? Not so fast.

The U.S. Federal Reserve (the Fed) hiked interest rates again today, raising the target range by a quarter point to 0.75-1.0%. We and, it seems, markets were fully expecting this move, particularly after Fed leaders provided very strong guidance last week that a March hike was in the pipeline.  The bigger issue for investors now

Mar 15, 2017 Categories: Investment, Markets

Quarterly Fixed Income Survey: bound in a narrow range

After an 80 basis point jump in US Treasury yields following the US presidential election, fixed income money managers have adjusted to the new environment. Across rates, spreads and major currencies, our second Global Fixed Income Survey1 shows managers’ forecasts are mostly clustered in a narrow range. The tightest consensus of all is for 2-3

Feb 24, 2017 Categories: Investment, Investment Strategy, Markets

Seeking return from fixed income: credit where credit’s due

Investors are struggling. High valuations and low interest rates make both equities and government bonds prospectively riskier and less rewarding. The search is on for alternative approaches and more flexible outcome-oriented strategies. Credit can play an important role in this search, but investors need to understand the characteristics of credit risk and where it fits

Sep 6, 2016 Categories: Investment, Markets

The bond market changes its mind on the interest rate outlook

The bond markets are currently anticipating increases in interest rates — but the pace of those anticipated increases is notably slower than it was at the turn of the year. And when we turn from the short-term federal funds rate that dominates the headlines to the longer duration instruments that matter most to institutional investors,

Feb 4, 2016 Categories: Markets

Excitement x 3 – the election, bond sell-off, and Legoland…

After the excitement of the Election, life returns to normal for the voting public, including pension trustees. Normality for trustees should include having a clear plan for using bond market volatility as an opportunity to de-risk. One of the implications of a General Election is that thousands of public buildings across the country have to

What exactly do you do all day?

There’s a running joke in the Rae household about what I actually do at work. My eldest now thinks I play Match Attax (don’t ask), my middle thinks I’m a builder and my youngest wishes I was Sir Topham Hatt (*makes a mental note to go to the gym more). The reality is perhaps less

Mar 26, 2015 Categories: Investment Strategy, Liability Hedging

Riding the waves of the bond markets

Recent movements in the gilt market have reinforced the importance of ensuring that the design and implementation of a hedging strategy remains flexible enough to withstand market realities. Over the last month, we’ve seen the yield on the 30 year gilt move from 2.40% on 8 January all the way down to 2.08% on 30

Feb 18, 2015 Categories: Investment Strategy, Liability Hedging

Derisking

Last week, my colleague Sorca Kelly-Scholte posted on the publication of the PPF ‘Purple Book’. In particular, Sorca highlighted the extent to which asset de-risking appeared to have slowed down based on asset allocation trends. As I read the same publication, I was caught by a different chart. On page 91 of the Purple Book,

Nov 14, 2014 Categories: Liability Hedging

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