On Monday, the firm confirmed it had begun selling off some of its private
bond portfolio and had cancelled entry fees to attract new investors to its funds.
That could equate with a $3.5 tln
bond portfolio as the Fed is more comfortable with managing money markets at that level.
MMAC reduced its investment in the leveraged
bond portfolio through the termination of 15 total return swap agreements that had a total notional amount of USD 102.6 million and sold one multi-family tax-exempt bond and one subordinate certificate interest in a multi-family tax-exempt bond.
Select indexes demonstrate that a 60 percent stock and 40 percent
bond portfolio declined between 22 and 25 percent from peak to trough.
To show how a mainstream stock and
bond portfolio would do under Research Affiliates' 10-year model, the report looks at the typical balanced portfolio of 60 percent stocks and 40 percent bonds.
Investors can try to make up the difference, reaching for yield by either lowering the credit quality or increasing the duration of their
bond portfolio, which increases its credit or interest rate risk, respectively, or they can add more dividend-paying stocks to the portfolio, which can reduce diversification.
The current government
bond portfolio held by local Saudi banks is the highest since the $33.9bn (SAR127.4bn) recorded in December 2007.
For example, if the
bond portfolio matures in four years, the leverage should also have the same four yearduration.
"Our solution enables private banks, wealth managers and financial advisors to boost their bonds sales, improve efficiency and increase their customer experience with a tailor made
bond portfolio optimization, analytics and monitoring solution.
It seems that everywhere you turn, the press is asking, "When is the Fed going to raise interest rates?" While that may be the question du jour, for long-term investors, the question is irrelevant to the construction of a high-quality
bond portfolio. Rather, here are the 10 things you should be focusing on.
Summary paragraph: From aiCIO's June issue, Charlie Thomas asks where is the sweet spot for concentration in a
bond portfolio.
