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6/13/2013 6:46 PM
With interest rates at low levels for a number of years now, many investors have moved some portion of their high-quality bond portfolios to higher-yielding investments like high-yield corporate bonds. I’ve long argued that there’s not much these strategies add relative to a traditional stock fund and high-quality bond strategy. Further, the traditional stock fund and high-quality bond allocation strategy tends to have lower costs and be more tax efficient. This is a bit of a qualitative argument though, and I wanted.... 2/27/2013 2:26 PM
With interest rates on intermediate- and long-term bonds ticking up a good bit over the beginning of the year, many investors are refocusing on the potential risk within bond portfolios. (As one data point iShares 20+ Treasury ETF is down about 1.8 percent year-to-date.) For many bond portfolios, that risk can come from either interest rate risk or credit risk. Here I’ll focus on interest rate risk.
The potential interest rate risk in a bond or bond fund portfolio is largely determ....
12/18/2012 3:46 PM
Europe’s debt crisis is entering its fourth year, and I wanted to pass along an update since it’s not getting the news attention it once was. In some ways, that’s good news. Part of the reason Europe is getting less attention is because its bond markets aren’t in the full blown crisis mode they’ve faced during the past three years.
Yield Spreads Relative to Germany
7/10/2012 10:05 AM
With the low rate levels of the past few years, some investors have found themselves less than happy with their investment choices. This has spurred many to repeat the same mistakes they made in 2003–2004: replacing low-yielding bonds with riskier investments that are more like stocks than high-quality bonds. Investors have become so pessimistic that — in my opinion — they don’t realize how good bond returns have been over the past few years for those who were willing to modestly extend maturity.
<.... 6/13/2012 4:43 PM
Over the past couple of weeks I’ve focused on high-yield corporate bonds, but three other yield-oriented investments I frequently get asked about are high-dividend stocks, preferred stocks and oil-and-gas master limited partnerships (MLPs). In the past couple of years, I’ve found that most investors who ask about these strategies are contemplating using them in place of high-quality fixed income because “fixed income rates are low.”
The most important .... 12/14/2011 12:06 PM
This anecdote illustrates a fairly well-known fact, namely that hedge funds aren’t nearly as uncorrelated with equity market performance as they genera.... 11/16/2011 11:36 AM10/21/2011 11:02 PM
JK: In the book you point out the historically poor reward for bearing credit risk. Specifically, you say that "Bonds exposed to credit risk have only marginally outperformed Treasuries over long histories by 0.2-0.5 percent ann.... 10/20/2011 2:19 PM
Antti Ilmanen is the author of Expected Returns, a book published by Wiley Finance this year. In my opinion it is a must read for investment professionals and for those investors who want to better understand the science of investing. Antti has just joined AQR Capital Management to represent .... |
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 | Jared Kizer
Director of
Investment Strategy
BAM Advisor Services
(see bio)
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