Western Asset Management has focused exclusively on fixed-income
since its founding in 1971.
Brett Wander, chief investment officer (CIO) for fixed income at Charles Schwab Investment Management in San Francisco, says, in a fixed-income
environment where both interest rates and spreads are low and have stayed low, almost all sectors have been performing well.
The real concern is that greater exposure to higher-yielding corporate bonds can “notably dampen a fixed-income
allocation’s diversification benefits to equity investments.” Crucial for plan sponsors to note, Gilliam says, this stretching for yield is very common in the TDFs that are most popular in the U.S.
Researchers generally identify three key factors that can generate fixed-income
return premia, according Riti Samanta, head of quantitative research and senior product manager of State Street Global Advisors' Fixed Income, Cash and Currency group: credit premium, liquidity premium and term premium.
In fact, 70% of retail investors do not hold any global fixed-income
investments and 62% do not see global fixed-income
"We believe these developments represent a structural shift in fixed-income
The majority currently have less than 30 percent of their fixed-income
portfolios in ETFs--for two in five of those who use them, ETFs account for less than 10 percent of the fixed-income
The service includes: trading ideas for rate swaps in all major and regional currencies; trading ideas for foreign-exchange options in major global and Asia-Pacific currencies; trading strategies in Asia-Pacific fixed-income
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, foreign-exchange and equities markets; weekly information on policy and macroeconomic developments; and, coverage of global bond issuance activity.
* IN ADDITION TO SERVING THE BEST INTERESTS of clients, CPAs introducing such customized fixed-income
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"Last year, her fixed-income
holdings were in cash, so she was earning less than 1%."
3 with a five-year return of 8.7 percent in the Piper managed domestic intermediate duration fixed-income