Is Levering Bonds a Loser’s Game Today?

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.

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US Housing Rebound Puts Spotlight on Real Estate

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.

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Five Ways to Keep Out of the Bond Liquidity Trap

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.

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The Liquidity Illusion: Pension Funds Should Rethink Fixed Income

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.

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China’s Property Market: Policy Is the Real Risk

By Hayden Briscoe (pictured) and Jenny Zeng of AllianceBernstein (NYSE:AB) Concerns about a possible collapse in China’s property market continue to grow. However, our research suggests that fundamentals are more robust than many think. The biggest danger lies in the potential for policy mistakes.

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Is This Bond for You? Less Liquid, Yields Great

Bond investors have historically enhanced their returns by taking on more interest-rate or credit risk. Today, a third opportunity is emerging for investors: the liquidity premium.

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Real Asset Strategies: Timing Isn’t Everything, but…

Real assets are coming off of a horrendous year relative to diversified stocks. Meanwhile, inflation is expected to stay low indefinitely. So why in the world should anyone own real assets now?

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How Low Can the 30-Year Treasury Yield Go?

Posted by Michael DePalma (pictured) and Philip Chasparis of AllianceBernstein (NYSE: AB) Even as the US Federal Reserve has continued to taper bond purchases and hint at eventually tightening monetary policy, long-term US Treasury yields have not only continued to fall, but outperformed all other maturities from two-year to 10-year bonds. Investors shouldn’t bank on them falling [...]

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Risk Parity Under the Microscope

Posted by Daniel J. Loewy (pictured) and Brian T. Brugman of AllianceBernstein (NYSE: AB) After tremendous growth over more than a decade of strong returns, risk-parity strategies have recently been struggling. Has the market run-up exposed a fatal flaw? We don’t think so.

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Let’s Get Real About Inflation

by Jon Ruff (pictured) and Greg Wilensky of AllianceBernstein (NYSE:AB) For the US and other developed economies right now, it’s “all quiet on the inflation front.” Perhaps too quiet. That’s why we believe it’s time to get real about inflation and the investing opportunities that may well develop in the next several years.

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