Vincent Kravec

Bonds May Not Be Loved, But They Shouldn’t Be Forgotten

Posted by Roman Moravec, James Meisner, Vincent Kravec on Jan 10, 2018

Topic: Asset Allocation | Fixed Income | Investment Strategy

Most institutional portfolios have strategic allocations to core (investment grade) fixed income, and for good reasons. Core fixed income can serve as an anchor during times when risk assets such as equities and lower grade credit are under assault.

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Thoughts on the Role of Credit in Institutional Portfolios

Posted by James Meisner, Vincent Kravec on Jun 14, 2017

Topic: Asset Allocation | Fixed Income

While most institutional portfolios have allocations to investment grade corporate credit, as a strategic allocation high yield and emerging market credit (liquid credit) are sometimes overlooked. Yet these sectors can deliver attractive performance relative to other asset classes over long time periods with the potential for strong cash flow and diversification benefits as well.

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Private Credit Opportunities

Posted by James Meisner, Vincent Kravec on Feb 8, 2017

Topic: Asset Allocation | Fixed Income | Investment Strategy

Much has been made of the challenges endowment, foundation and nonprofit investors face in achieving a CPI+ five percent return target. One way to improve the probability of attaining this goal is to take advantage of the so-called “liquidity premium.”

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Global Bonds – Not what they used to be

Posted by James Meisner, Vincent Kravec on Jul 28, 2016

Topic: Fixed Income

A constant topic of conversation in the financial media in recent years has been the degree to which central bank intervention across the globe has suppressed volatility in the markets and has caused global bond yields to fall to historically low levels. Some market veterans with a long-term perspective shake their heads in disbelief at current levels, warning others like a modern-day Cassandra, that bond investors will be in for a world of hurt once yields begin to rise.

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How Do You Get to Nine Percent?

Posted by Vincent Kravec, Alec Rapaport on Apr 25, 2016

Topic: Fixed Income | Investment Strategy

For much of the first quarter, U.S. below-investment grade corporate bond indices reported yields that exceeded 9 percent, leading to spreads, or additional yield to comparable Treasuries, in excess of 7 ½ percent. Even after the substantial rally in risk assets during March, yields were reported greater than 8 percent with average spreads north of 7 percent. Currently well above long run historical averages, spreads seemingly more than compensated investors for the inherent credit and liquidity risk in high yield bonds. Sounds great, I’ll take it! Or should I?

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Regulation Meets Policy in the Cash Markets

Posted by Vincent Kravec, Alec Rapaport on Jan 26, 2016

Topic: Fixed Income | Governance and Policy | Industry Knowledge | Market Commentary | Operating Assets

Right now, central bank policy and money market reform are front and center in the cash markets. Are historic indicators of market stress cause for concern? Or are they reflecting the technical impacts of money market reform?

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