Following the recent nine-month sprint, the lowest-quality bonds are fatigued and overvalued, while higher-quality bonds appear to have more stamina. Investors, however, should take note of the exit signs.
Pension fund deficits, which remain heavily concentrated among a handful of firms, are just starting to impact the bottom line, while the longer-term implications for all investors may be a shift in asset allocation.
Commodities could provide valuable portfolio protection in the event that central banks, focused on using liquidity to fend off deflation, incite a bout of unexpected inflation.
This report analyzes the current environment for timberland investments, including sources of return and a breakdown of global supply and demand issues. Also included is a discussion of the relative merits of the four primary vehicles for timberland investment: commingled accounts, separate accounts, direct investing, and REITs and MLPs.
Will high-yield bonds post outsized gains as they did in 1991 when they returned nearly 50%?
A thorough presentation of the policy and strategic arguments for a commodities allocation, the impact of inflation on commodities’ performance, the special concerns for non-US$-denominated investors, and key implementation issues. Exhibits include data on performance under varying market and economic conditions, index correlations, and diversification benefits. Also included are representative manager factsheets and analyses of…
S&P Core and NIPA earnings address many of the shortcomings associated with reported (GAAP) and operating earnings.
Small-cap equities have thrashed large caps over the last two years. While the performance disparity between small and large caps is already significant, the small-cap rally may still have some legs if history serves as a useful guide. Investors should maintain exposure to both small and large caps, rebalancing among both the capitalization sectors and…
This report examines the nature of high-yield bond returns, the role of high-yield bonds in a diversified portfolio, and the implementation of an allocation. Exhibits include data on issuance, default and transition rates, and spreads relative to treasury bonds. Also included are performance data on representative high-yield managers and descriptions of benchmarks.