In Energy Revolution, Bond Investors Must Keep Their Heads

Ivan Rudolph-Shabinsky

By Ivan Rudolph-Shabinsky (pictured) and Petter Stensland

A surge in capital expenditures and leverage in the energy industry could end badly for some companies and their creditors. While select opportunities exist, we think bond investors should think carefully before they blindly bankroll today’s North American energy revolution.

Read More

Grappling with Geopolitical Risk

Sharon Fay

Financial markets have faced an increasing array of geopolitical risks this year. In our view, investors should put these events into the right context and focus on how individual companies might be affected when considering their potential impact on equity positions or allocations.

Read More

The Right Fit: Global Bonds and DC Plans

Alison Martier

At a time when US defined contribution plans are seeking to control risk and enhance returns, hedged global bonds can improve outcomes for participants and sponsors. But how do plans incorporate global bonds in core menus and target-date funds?

Read More

Tinkering with the Core Bond Recipe

Alison Martier

This is the time of year when, in almost every American household, the tinkerer in the family eyes the recipe box. Certain venerable traditions will make it to the Thanksgiving table intact. A cousin or an in-law is sure to bring an entirely new dish. And some traditional plates could use some freshening up. That’s the case with core fixed income.

Read More

Get Smart About Giving

Tara Thompson Popernik

With the year-end drawing near, many US taxpayers are starting to think about how much to give to tax-deductible causes. But too often, even financially sophisticated people miss a simple way to boost the tax benefit from their charitable donations: by giving appreciated securities, rather than cash.

Read More

Is Levering Bonds a Loser’s Game Today?

Michael DePalma

By Michael DePalma (pictured) and Arnab Nilim

Multi-asset strategies like risk parity owe much of their popularity to their ability to navigate the global financial crisis. Lately, critics have cited levered bond returns as the driver—and as a looming headwind. We think they’re missing a key point.

Read More

Forget Volatility; Watch Credit Quality, Maturity

Ashish Shah

If you’re worried about the recent spike in bond market volatility, we’ve got a bit of advice: Don’t be. There are plenty of other risks—chiefly credit quality and flatter yield curves—that are causing shakeups in some corners of the fixed-income world. Happily, there are things you can do about them.

Read More

GDP Leaves False Trail in Emerging Equities

Morgan Harting

Morgan C. Harting (pictured) and Nelson Yu

Many investors in emerging markets (EMs) believe that identifying the fastest-growing economies is the key to finding higher returns. But while this approach has been effective in fixed-income investing, our research shows that it’s fairly useless for guiding country selection in developing-market equities.

Read More

Time to Rethink China’s Equity Markets

Stuart Rae

Plans for a new Shanghai-Hong Kong trading system are among three developments that we expect will give a boost to China’s equity markets in the medium to long term. So despite concern about the economic outlook, now could be the time to begin rethinking China from an investment perspective.

Read More

US Housing Rebound Puts Spotlight on Real Estate

Matthew D. Bass

With a US housing recovery in full swing, this may be a good time for investors to consider securities backed by residential real estate. We think they’re an attractive way to diversify exposure to high-yield bonds and other risk-seeking assets.

Read More