Displaying items by tag: yields

The bond market boon 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 investor 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.

Worried about rising interest rates? These three strategies can help mitigate interest-rate risk ... Read More

Muni clients concerned about rising rates? See how staying the course vs. moving to cash stacks up ... [Read More]

Fixed income markets are currently weighing several potential peaks — peak growth, peak inflation (maybe) and peak policy support (likely)...See More

Worried about rising interest rates? These three strategies can help mitigate interest-rate risk. See More