Displaying items by tag: yields
Bond compass: barbelling credit and defensives
Fixed income markets are currently weighing several potential peaks — peak growth, peak inflation (maybe) and peak policy support (likely)...See More
How to Take Control of Your Bond Portfolio's Interest Rate Risk
Worried about rising interest rates? These three strategies can help mitigate interest-rate risk. See More
When Rates Rise, Munis Win Race While Cash Sleeps
Muni clients concerned about rising rates? See how staying the course vs. moving to cash stacks up. See More
Inflation: A Double Whammy for Bond Investors
Throughout 2021 one of the biggest worries for investors, business owners, and policy makers has been the return of inflation…see the full story on our partner’s site
How to Outperform in Bonds
The bond market boom has been bad for many fixed income investors, and debt is coming to term in a higher inflationary environment which is eating up all the return. However, bond market investors are turning to factor based investing to earn excess returns. Factor investing is a $700 billion market in equities, and it dwarfs the $25 billion dollar fixed income factor market. Factor investing modifies indices based on factors they think can give an edge over traditional indices. Active bond factor investing can outperform traditional indices in rising yield environments, but factor investing is looking to rival these active funds with systemic decisions. A ‘smart beta’ approach will look to outperform in high yield and emerging market debt.
FINSUM: The extensive literature on systemic fixed income is relatively small, and that's why smart beta strategies have failed to take off in the bond market like they have in equities.