Equity Shock Absorbers Pass October Test

Kent Hargis

Kent Hargis (pictured) and Chris Marx

After nearly nine months of calm, equity market volatility has returned and is threatening investors with the prospect of losing money. We believe the recent episode in US and global stocks reinforces the case for having a strategic allocation to equities that can withstand shocks.

Read More

After the Beta Trade in Emerging Markets

Sammy Suzuki

Sammy Suzuki (pictured) and Morgan Harting

It’s getting harder to generate equity returns in emerging markets (EMs). Simply chasing the index—the so-called beta trade—won’t do the job anymore. But with a more discriminating, active approach, we believe investors can still capture opportunities in the next phase of the EM growth evolution.

Read More

The Core of the Modern Bond Strategy: Go Global

Douglas J. Peebles

“Keep Calm and Carry On” reads a popular World War II–era British motivational poster. We think the first half of the slogan is good advice for bond investors in today’s uncertain markets, but we’d substitute the second with “Go Global.”

Read More

What to Think About in a Bond-Market Reboot

Alison Martier

US interest rates are likely to head up gradually over the next several years, now that the long tailwind from a three-decade-long rate decline has subsided. With bonds still an important part of many portfolios, what should investors be thinking about?

Read More

Will New Greek Drama Threaten European Periphery?

Darren Williams

Darren Williams (pictured) and Dennis Shen

Markets are reacting badly to Greek plans to exit its bailout program early. Uncertainties are being heightened by the prospect of early general elections. The end-result has been a sharp sell-off in Greek sovereign bonds, which has raised fresh concerns about the potential for spillover from Greek risks to other peripheral markets. 

Read More

Five Ways to Keep Out of the Bond Liquidity Trap

Douglas J. Peebles

Bond investors are used to managing interest-rate risk and credit risk. But the financial crisis should have taught us that there are times when liquidity risk can be just as important to manage. Now is one of those times.

Read More

Investing for Tax-Efficient Portfolio Income

Tara Thompson Popernik

Tara Thompson Popernik (pictured) and Robert Dietz

With tax-exempt income from US municipal bond portfolios still near historic lows, investors spending from their portfolios can no longer get the income they need by simply increasing their allocation to high-quality, intermediate-duration bonds. As a result, many investors today are chasing yield into dangerous territory.

Read More

High Yield’s September Sell-Off Doesn’t Change the Story

Ivan Rudolph-Shabinsky

By Ivan Rudolph-Shabinsky (pictured) and Gershon Distenfeld of AllianceBernstein (NYSE: AB)

The recent sell-off in high-yield bonds has many investors wondering whether this is another big buying opportunity—like prior sell-offs have been—or the start of something more ominous. 

Read More

The Liquidity Illusion: Pension Funds Should Rethink Fixed Income

Matthew D. Bass

Pension fund managers, like many investors, have historically paid a premium for liquidity. Lately they’ve started to realize that liquidity can be an illusion—but it can also be an opportunity.

Read More

Are Asia ex Japan Equities Primed for a Comeback?

Stuart Rae

Stuart Rae (pictured) and Rajeev Eyunni

As developed-market equities continue to scale multiyear highs, their emerging-market counterparts—most notably Asian ex Japan stocks—have been more hesitant. Is it time for investors to take a closer look at the region?

Read More