Fixed Income

Flexible outcomes from fixed income


Consider the classic cartoon character standing on the edge of a cliff, his foot tied by a long rope to a heavy anchor. The villain then throws the anchor into the canyon below. As the rope uncoils, he realises the situation. Will the rope be longer than the canyon is deep, or will he be pulled over the edge? In this case, his
choices are to hope the canyon isn’t too deep, to hope for some elasticity, to cut the rope completely or to tie his other foot to the nearby tree. Our hapless hero is paralysed by the choice, but there is clearly a finite amount of time in which he must decide what to do.

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Flexible outcomes from fixed income 22 pages | 1,941 kb


The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.