Focusing on the Three C’s for Fixed Income Investing

December 1, 2020 — Fixed income investors have benefited from falling rates and a recovery in spreads, which has generated attractive returns thus far in 2020. As we approach the end of this unexpected year, a more prudent and active approach is necessary as the backdrop has become more challenging ā€“ valuations are less compelling; yields are low and are expected to remain so; and, as illustrated in the chart below, the duration of fixed income indices is high for the slim cushion of yield they provide. As active fixed income managers, we are focused on three Cā€™s ā€“ curve management, (yield) carry, and the consumer-led recovery.

  • DATE: December 1, 2020
  • TYPE: PDF

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