bonds

46 Posts

Bonds = Risks

Bonds = Risks

Ever since the bottom of the stock market, if not before, individual investors and many institutional investors have been adding to their bond holdings at a much faster rate than their appreciating equity holdings. While the rush is understandable for those who suffered equity losses by selling in the decline or seeing their wealth on paper shrink, I nevertheless find any stampede a bit scary. Read more

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Book Review: Bonds Are Not Forever: The Crisis Facing Fixed Income Investors

Bonds Are Not Forever: The Crisis Facing Fixed Income Investors

This book is recommended for anyone interested in the contemporary role of bonds in investment portfolios. The author explores the history of debt from ancient to modern times and discusses the growth of derivatives, developments in risk management, inflation in the modern era, the political backdrop of today’s debt standoffs, and why “bonds are not forever.” Read more

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Emerging Market Debt: An Overlooked Source of Alpha?

A Chinese investor looks at a stock index at a stock brokerage house in Huaibei city.

After the global financial crisis, emerging market debt was a rising star. Yet, since last fall these markets had steadily lost ground. Now that these markets appear to have stabilized in recent months, are there opportunities for investors? If so, are these opportunities beta or alpha? In other words, can you jump in with both feet or do you have to be selective in what you invest? Read more

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What Makes Emerging Market Debt Tick?

Port of Rio de Janeiro

Three factors make emerging market debt tick: country risk, mostly driven by fiscal conditions, i.e., internal balances as it is often known; currency risk, driven by balance of payments or external balances and the resulting reserve positions; and corporate credit risk, i.e., company balance sheets. Read more

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