Practical analysis for investment professionals

fixed income


Is There a Bond Market Bubble?

If the results of a recent CFA Institute Financial NewsBrief poll are any indication, at least some of the global fixed-income market is in bubble territory.

Forecasting Fixed-Income Default Rates

“Typically when the default rate is 1% or more above the Moody’s forecast, it is a good time to own distressed bonds," Martin Fridson, CFA, said. "Similarly, if the bonds are priced 1% or more below Moody’s, then the distressed bonds are priced too tightly (i.e., a signal to sell).”

Reduced Viability? Banks, Insurance Companies, and Low Interest Rates

In the current low-rate environment, there is reason to wonder about the viability of banks, insurance companies, and indeed any institution that generally depends on the spread between long- and short-dated liabilities for its profits, says David Schawel, CFA.

Weekend Reads for Investors: Very Interesting Edition

Jason Voss, CFA, provides his choices for Weekend Reads for Investors. This edition discusses the decline of US productivity, the little-known but important Sykes-Picot Agreement, and sleeping trees.

Policy Divergence and Investor Implications

Bank of America Merrill Lynch macro-economist Karin Kimbrough explores a world where all the old symmetries of monetary and fiscal policy have evaporated.

Weekend Reads: Social Entrepreneurs, Bond Investing, and Human Nature

In my previous life, as a reporter for the Financial Times, I did a stint covering philanthropy. I heard a lot about social entrepreneurship, philanthrocapitalism, and the ways that some philanthropists and nonprofit organizations were tackling some of the world's toughest, seemingly intractable, social ills.

What Makes China’s Corporate Bond Market Different?

Janet Zhang shares two key insights from the 10th Asian Bond Markets Summit in Beijing: There is still ample room for China's bond market to develop but China's corporate bonds are quite different from those in the developed markets, so foreign investors should understand their subtleties before investing.

Convexity Hedging: What Is It, and Why Does It Matter?

Observant readers will have noted that various sell-side researchers and other market commentators have mentioned “convexity hedging” as something that could exacerbate a selloff in UST rates. Here I take a high-level look at what convexity hedging is and how it affects the UST market.



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