Passive corporate bond investors could face significant losses when the next economic downturn hits. Active managers, however, have more flexibility and should be able to manage these risks more efficiently.
The extent of the diversity of global fixed income markets, and the scope for achieving strong returns while managing risk, may be underappreciated by investors.
Data shows that long term investment grade corporate bond returns have been relatively smooth and consistent, even through difficult markets.
Our inescapable truths are the economic forces and disruptive forces we think will shape the investment landscape over the years to come.
After the disappointment of 2018, Chief Executive Peter Harrison rounds up the factors our fund managers think could lead to a brighter year ahead.
The securitised sector offers respite from overcrowded corporate credit markets and inefficiencies continue to create opportunities.
The storm clouds are gathering for fixed income investors who may soon have to leave behind the quiet life which they have become accustomed to since 2008.