Displaying items by tag: outperformance

Tuesday, 18 January 2022 08:37

Why Wine Investment

Join Cult Wines Investment Americas CEO, Atul Tiwari as he details how it works, the red-hot fine wine market, the wider global financial environment, and an outlook for what to expect in 2022 ... [Read More]

Published in Alternatives
Tuesday, 18 January 2022 08:36

Fine Wines: 2022 Market Outlook

Ready to learn more? Read Cult Wines' entire 2022 market outlook here. Fine wine can continue to post healthy performance and carry over a fantastic 2021 campaign into 2022. Economic growth and a deepening supply-demand imbalance point to ongoing price appreciation ... [Read More]

Published in Alternatives
Tuesday, 11 January 2022 21:27

Corporate Bond Funds Looking Ripe

Investors have been wary of tech stocks as of late and instead are parking their money in investment-grade corporate bond funds. This week the sector garnered a whopping $2.9 billion in inflows which is the biggest week since July, over six months ago. Markets are expecting the Fed to hike this year, which means borrowing rates will start to hurt the growth-oriented stock, and the Nasdaq slumped to its worst start since 2008 as a result. However, the rising yields are also pushing more investors into relatively riskless corporate debt. Junk bonds didn’t get the same bump as many indices were down with a hawkish Fed.


Finsum: Don’t sell on tech stocks just yet, but it could be a bearish year for the number one market segment the last year if the Fed hikes four times!

Published in Bonds: IG
Wednesday, 05 January 2022 19:59

Active Fixed Income Continues Stellar Performance

ETFs saw a record performance in 2022 as inflows almost reached 1 trillion dollars, and while equity brought in over 60% of the inflows the second half was dominated by the fixed income market. This momentum in fixed income is expected to swell in 2022, particularly for the active ETF funds. Driving that those trending figures are the outperformance of active funds over passive funds, and an almost peak interest rate and inflation uncertainty. This sort of bourgeoning inflation and constricting Fed is unprecedented for the post-Volcker era. Active Issuers like T. Rowe price are very bullish on their prospects in the upcoming year.


FINSUM: While active funds haven’t brought home major returns they are getting better yield than passive funds and more diversity rather than piling on U.S. government securities.

Published in Bonds: IG
Monday, 27 December 2021 21:35

Forget Beta; Fixed Income ETFs Give an Alpha Edge

The low rate environment has flipped the paradigm of many investors when it comes to the bond market, and most investors are leaning on higher-yield fixed income ETFs to augment their portfolios. Sure fixed-income ETFs are mainly used as a risk mitigator for most investors, but they also are the way to generate alpha. Investors can better manage the liquidity of Fixed income ETFs as opposed to individual bonds, so they pose fewer liquidity constraints when selling. With liquidity concerns off the table, investors can more freely move securities to look for an advantage of standard indices, hence alpha. On top of this, their broader exposure is a better source of risk mitigation as well.


FINSUM: Being able to flip a fixed income ETF faster than individual bonds is a leg up in decision making, and another reason to cast a wider net in the current fixed income market.

Published in Bonds: Total Market
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