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Roundtable

Fixed income

Latest Roundtable

Fixed income

Moving up the risk curve for yield

Fixed income

Traditional asset classes have slowly lost their lustre. Some areas of government debt have seen negative real yields while parts of the equity market have become too hot to handle for most as valuations have rocketed on the back of Trump’s election and a drop in sterling.
In order to close expanding funding gaps and meet liabilities in a cashflow-starved environment, investors have had to either work their existing assets harder or look to new forms of income.
In the fixed income space this has meant moving up the risk curve into higher yielding, illiquid securities sometimes carrying higher leverage. Popular choices among institutions include high yield bonds, infrastructure and other private market assets such as direct lending and leveraged loans.
But with this search for yield has come concern from some quarters that investors are reaching too far to find it – and in doing so are teetering on the brink of sliding back into the murky pre-crisis world of high leverage and risk disguised as quality.
Some people fear investors have begun to develop unrealistic expectations of the long-term returns that can be extracted from bonds without taking excessive risk.
This roundtable discussion featuring asset owners, consultants and asset managers addresses the opportunities in fixed income and the various ways institutional investors are accessing them. It also considers the macro-economic factors at play and aims to shed light on the risks inherent in these strategies.
As always, the importance of fully understanding an investment before allocating to the different areas of fixed income can never be emphasised strongly enough

Fixed income roundtable discussion

Fixed income roundtable discussion

In the lower-for-longer monetary policy dominated world, how should investors approach investing in fixed income? Should it be from a top-down or bottom-up perspective?

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The wrong type of inflation?

The wrong type of inflation?

by Emma Cusworth

Rising inflation looks to be a dead cert, but what form will it take and do schemes need to start thinking about hedging?

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Going Green in Your Investment-Grade Portfolio

Going Green in Your Investment-Grade Portfolio

by Bertrand Gacon, Lombard Odier

Many investors have decided to take on more credit risk as the duration in investment-grade bonds begins to look increasingly risky. We think that is a sensible strategy – but for those who cannot give up investment grade completely, a sophisticated climate bonds strategy offers a way to compensate low yields with positive environmental impact.

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Risk: On or Off? Adding Value in Global Investment Grade Corporate Portfolios

Risk: On or Off? Adding Value in Global Investment Grade Corporate Portfolios

By Edward Farley, PGIM Fixed Income

While we believe the underlying tone of the European corporate bond market has been constructive so far in 2017, political undercurrents are flowing faster in the run-up to several national elections across Europe.

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Absolute Return Fixed Income: a better way to invest in bonds in an uncertain world.

Absolute Return Fixed Income: a better way to invest in bonds in an uncertain world.

By Andres Sanchez Balcazar, Pictet Asset Management

Absolute return fixed income strategies can help investors ride out market volatility even when the unexpected happens.

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Kindly sponsored by:

If you are interested to participate in one of our future roundtable discussions please contact us for further details.

John Waterson
Head of sales UK
j.waterson@portfolio-institutional.co.uk
T: +44 20 78228567