Insights


How Core Plus Can Boost Your Bond Portfolio’s Return

By Luis Maizel – Co-Founder and Senior Managing Director, LM Capital Group

“A core plus strategy provides investors broad fixed income sector exposure and the flexibility to pursue returns from sectors or markets that may be less affected by rising U.S. interest rates, including those outside of the U.S.”

 

Today’s fixed income investment environment can be especially negative for bond portfolios heavily weighted with core holdings such as Treasuries, agencies, MBS, and investment-grade corporate bonds—all of which are highly sensitive to rising interest rates and changing fiscal and monetary policy.

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Investing While Waiting for a Rising Rate Environment

By Patrick Faul, Director – Research, September 19, 2017.

“Mr. Godot told me to tell you he won’t come this evening but surely tomorrow.”- Samuel Beckett

 

Over the last several years, many bond market participants have waited impatiently for the arrival of higher rates. It is easy for all issuers to sell bonds when the biggest buyers do not make decisions based upon the rates of the bonds they are buying. When central banks do stop buying bonds to keep rates low, there is a good chance rates will actually rise, and sellers will find buyers to be more selective. The end of government intervention (Quantitative Easing) is eagerly awaited so that investors can go back to what they learned from their now-dusty finance textbooks.

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Active Fixed-Income Fund Management: There’s Nothing Passive About It

By Luis Maizel – Co-Founder and Senior Managing Director, LM Capital Group

“Should investors prefer active fixed income investment management strategies over a passive fixed income investment strategy?”

 

R-I-S-K. In the world of investments, it’s the four-letter word we each try to minimize. Active fixed income investment management has the ability to reduce some or most of the risks that often unknowingly plague passive investors.

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