Our perspective on global micro event and strategies.
As an investment director in Investment Product and Fund Strategies, Emily works closely with fixed income investors to help ensure the integrity of their investment approaches. This includes meeting regularly with the teams and overseeing portfolio positioning, performance, and risk exposures. In addition, she contributes to developing new products and client solutions and managing business issues such as capacity, fees, and guidelines. She also meets with clients, prospects, and consultants to communicate our investment philosophy, strategy, positioning, and performance.
In our last blog post, we described the secular forces that we believe are driving the transition to a new fixed income reality characterized by more frequent market dislocations. Here, we lay out four steps investors can take to build a new fixed income allocation that is equal to today’s challenges and opportunities.
It’s best to start with what we know has changed. We know that inflation may be poised to rise in many countries, which could have important implications for global currencies and interest rates. We know also that the fixed income markets have evolved to become increasingly…
Most of the past decade-plus has been characterized by declining interest rates and tightening credit spreads. Against this backdrop, many traditional fixed income benchmarks have performed well, particularly those with longer durations and meaningful credit components.
However, we believe 2021 could mark a transition to a new fixed income reality wrought by ongoing structural changes, potentially leading to more frequent dislocations across market sectors. Here we describe the secular forces that we believe are driving these changes, to be followed by a proposed solution for fixed income investors in our next blog post.
The COVID-19 crisis has driven increased adoption of technology and structural shifts in consumer behavior, some of which are…