How much risk is there in your bond funds now that interest rates are rising? Two recent studies suggest the same answer: plenty. So the shorter the maturity the better. Research from two Smith Barney strategists and Lipper senior research ...
Bond outlook: Income opportunities widen The era of TINA, or "there is no alternative" to stocks, may be over. Income opportunities from bonds could be the best in decades, and investors now have more options. Get our fixed income team's latest thinking. FIND INCOME Bond yields have su...
A credit spread is the extra yield that a corporate bond (or any non-government bond) offers over a comparable Treasury. It's meant to compensate for the added risk of lending to a corporation, like the risk of default (that is, the risk that a borrower will not make required payments)...
The subdued outlook for many public assets will push investors to continue exploring private opportunities, where barriers to entry are higher and more targeted themes can be explored. Secondary funds and direct transactions offer a compelling opportunity to shape and build exposure to private investment...
Compare this with dollar interest rates since 1971, when the dollar had suspended the remaining fig-leaf of gold backing, which is shown in Figure 5 for the decade following. In February 1972 the Fed Funds rate was 3.29%, rising eventually to over 19% in January 1981. At the same time ...
to include investments in sectors required for the function of a modern, technology-driven economy, delivered total return in excess of the overwhelming majority of other infrastructure etfs and funds from its launch the last week of april 2020 through the present (as of...
central for domestic investors, shortening debt maturities may help restore hedging efficacy (Figure 6). At the extreme, moving to cash replaces the potential for asset class diversification—such as positive bond returns offsetting equity losses—with the more limited benefit of reducing drawdown ...
There’s liquidity for one: despite the emergence of semi-liquid funds, these investment strategies remain fundamentally illiquid and therefore not necessarily advisable to everyone directly – except, through pension schemes. So, is the future of investing private? I would argue that answer is yes...
In recent months, investors have shifted assets from stock and bond investments and driven money market totals to a record $5.39 trillion, as of 26 May, 2023. This flight to cash and cash alternatives such as money market funds and short-term Treasuries is understandable following last year’...
This is where credit research and security selection are critical to the portfolio construction process in order for Asia bond funds to generate alpha versus the JPMorgan Asia Credit index. Figure 2 – Proportion of bonds within Asia HY index with 8 to 10% yield (Mar 2023 – Dec 2024) ...