fixed income
At the European Investment Conference, Jochen Felsenheimer of XAIA Investments explained that high yield was no place for long-only buy and hold investors. But is any investment safe from financial Armageddon?
Most projected high-yield bond default rates in the marketplace, asserts Martin S. Fridson, CFA, are based on a calculation method that is wrong for a number of reasons.
Jason Voss, CFA, assesses three factors to understand the current bill of health for emerging market fixed-income investments.
The traditional investment approach to fixed income links the credit risk of a security to financial metrics like profitability, leverage, and productivity. But modern responsible investing goes beyond that. It also integrates environmental, social, and governance (ESG) metrics for a more complete risk assessment.
Steven Major, CFA, global head of fixed-income research at HSBC, explained that a year ago his team was criticised for predicting long term government yields 1% lower than market consensus. He wished he had been wrong, but today, the term premium on long-end US bonds is negative.
Economic observers and money managers have faced a confusing environment since last summer, when then-Chairman Ben Bernanke shook the complacency of the market and signaled a tightening.
Markets are made at the margin, and in this case the tightening,… READ MORE ›
Retail investors are currently pouring money into “bank loan” funds at a record rate, and the longer term implications are cringe worthy.
The popularity and rationale for investor interest has some merits, but only on the surface. The reasoning… READ MORE ›
Simon Lack says the US Federal Reserve has made an entire asset class expensive for investors, meaning that diversification can do more harm than good today.
Value in the fixed-income markets, as in other asset classes, is driven in large part by fear and greed. The easy monetary policy communicated to the market through “QE infinity” in fall 2012 fueled a chase for yield that was already… READ MORE ›
The rapid selloff in the US Treasury market has come as a surprise to many, including such famous bond investors as Bill Gross, CFA, and Jeffrey Gundlach. As the chart below shows, 10-year yields on US Treasuries (10yr UST) are about… READ MORE ›