fixed income

With the danger of fractured markets inflated, the need for a truly non-correlative asset is at a premium. And with the default system cleaned up, Fortlake saw an opportunity to provide investors with the ultimate diversifier.

Whether you perceive the RBA’s messaging to be balanced or mixed, the uncertainty serves as a reminder that fixed income is a vital sleeve in any investment portfolio.

Duration is no longer a dirty word. Private debt is a house of cards. Welcome to the new era of fixed income.

Many end-investors might assume that it is equities managers that are most at risk from whipsawing jerks in market sentiment, but fixed-income managers, too, can find themselves out of position very quickly, as something they did not see coming… comes.

The traditional 60/40 portfolio mix of shares and bonds may be due a shakeup in 2023, as market participants look to add fixed-income exposure to help offset a potentially weak year for equities.

This year’s recalibration of bond prices now reflects the higher interest rate environment, making future returns attractive again for fixed income in 2023 as deteriorating fundamentals threaten other asset classes.

Investors are flocking to risk stocks in the hope of an early Fed pivot following a better-than-expected US inflation report. While it is too early for a pivot, according to Atchison Consultants, the longer-term outlook for fixed income is positive.

Atchison Consultants’ Kevin Toohey on why bond benchmarks only cover a slice of a diverse universe.

Adam Grotzinger from Neuberger Berman goes in-depth with James Dunn from The Inside Network on ‘Flexibility still the key to fixed income success’.

Fixed income allocations have experienced a difficult 12 months, with both performance and sentiment turning against the sector. The threat of higher interest rates has seen volatility in Government bond markets reach levels not seen in decades. With many experts now suggesting that the duration “tailwind” is over, being the capital gains offered by bonds…