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.
Investing in a negative yielding bond effectively locks in a loss, but can still be a rational thing to do. Here we look at six reasons why.