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Fixed Income

Capturing Credit Opportunities in Times of Crisis

Posted by Olga Chiriac, Vincent Kravec, Kristofer Kwait on Jul 10, 2020

Topic: COVID-19 | Fixed Income

On the heels of the dislocation brought about by COVID-19 many investors have sought to define the outlook for various sectors of the market. We have seen some managers in the core bond space materially lean into corporate credit to take advantage of the “generational wides” in credit spreads. We were curious to put the current event in context relative to other meaningful spread widening events and use this as a springboard to consider possible outcomes in credit going forward.

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Bonds: Unwanted and Unloved but not Unnecessary

Posted by Timothy T. Yates, Jr., Mark J.P. Anson on May 30, 2018

Topic: Fixed Income | Investment Strategy

Well, the party may finally be over. Like the college dean who shuts down the campus party, the Fed has finally taken away the interest rate punch bowl that investors have enjoyed for so long. It may be hard to believe, but we have been in a secular interest rate decline for over thirty years...

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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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The Crowded Liquidity Trade

Posted by Ryan Driscoll, Michael Strauss on Apr 10, 2017

Topic: Fixed Income | Investment Strategy | Operating Assets

Over the past few months, we have seen a massive shift of investor assets from prime to government money market funds in response to post-crisis regulatory amendments that have been years in the making. Surprisingly, the market reaction happened quickly and dramatically, even though the changes were widely known. In October 2016, SEC rule amendments were implemented to prevent the possibility of cash investments, specifically prime money market mutual funds, from “breaking the buck” and resulting in liquidity panics in the future.

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Taking Chips off the Table

Posted by Ryan Driscoll, Michael Strauss on Feb 22, 2017

Topic: Equities | Fixed Income | Market Commentary

The question we are often asked is…when should investors begin to take chips off the table? The S&P 500 Index has delivered a 16+ percentage point relative gain compared to the Bloomberg Barclays Aggregate Bond Index since the start of this fiscal year. Near term, we may see a return to a choppy market where stocks still best bonds but with a smaller differential.

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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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Global Economic & Investment Outlook:
2016 – A Year of Transition

Posted by Commonfund on Jan 4, 2016

Topic: Asset Allocation | Equities | Fixed Income | Hedge Funds | Market Commentary | Private Capital

Our 2016 Global Economic and Investment Outlook provides a detailed look at our expectations and portfolio positioning going forward.

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Much Ado About Nothing

Posted by Michael Strauss on Nov 4, 2015

Topic: Equities | Fixed Income | Market Commentary

Market pundits are obsessing over the timing of the Fed move on interest rates with increasing divergence on “when” but not “if”. The reality is that this timing doesn’t really matter – whether it be December, March or somewhere in between.

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