Despite mounting concerns over deflation, inflation-linked bonds offer low-cost insurance against a deflationary future, and look increasingly attractive relative to nominal government bonds at today’s historically low yields.
In a broad and integrated global equity market, realization of portfolio goals increasingly requires investors to adopt both an appropriate global equity investment strategy and a well-thought-out implementation plan that includes decisions regarding portfolio structure. This structure should enable investors to easily dial exposure up or down among sectors, regions, styles, and capitalization sizes. “Global…
Today’s economic environment and current yields and spreads make investment-grade bonds an asset class worthy of consideration, but this would be a tactical bet with potentially significant downside if the exit is poorly timed.
Market leadership shifted abruptly toward high-quality mega-cap stocks over October and November, yet despite the sharp recent improvement in relative valuations of small caps and value stocks, we still think it is too early to switch from a defensive high-quality portfolio in the current environment.
This paper reviews strategic questions and advises investors to think carefully about the economic and political dimensions of investment decisions.
The default outlook for high-yield bonds is dreadful, but with more than two-in-three issues trading at distressed levels, today’s yields already price in depressionary conditions.
This primer discusses securities lending programs.
While it is only natural to crave safety after periods of intense volatility, we do not believe investors should respond to recent market declines by panicking, scrapping their policy portfolio, and hunkering down in cash (with the obvious exception of excess cash necessary for near-term capital call, spending, and other liquidity needs).
While the current sell-off is in line with previous major bear markets of the postwar period, it is extreme in its speed and volatility. Precedent would suggest that markets will remain under pressure for the immediate future, but unless you assume we are on the verge of a 1930s’ style bust, equities are poised for…
Due to the recent market volatility, many investors may be facing a liquidity crunch, and some a severe liquidity crisis. This paper is designed to outline a coherent process for assessing the sources and uses of cash, examine the implications of different decisions investors might make about their liquidity needs, and recommend some general guidelines…