Can active management pay for itself in fixed-income funds?

While using low-cost bond ETFs for the fixed-income portion of a portfolio seems like the right approach, some say active bond fund management may be a better fit. Source: MoneySense With seemingly perpetual low interest rates—and even the threat of negative interest rates, as seen in parts of Europe and elsewhere—does it make sense to…

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Emerging market corporate bonds can provide higher returns for an equivalent risk

Emerging markets are turning into a mainstream asset class providing a wider bond market corporate issuers with diversification as a key element. Source: The National Corporate bonds have a long tradition in developed markets, with a large investor base across the credit rating spectrum. Over the past decade, corporate bonds of issuers based in emerging…

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Euro credit rush to only cool modestly in 2020

Europe’s Credit Market Expected to go from Red Hot to merely Boiling in 2020 Source: Gulf Times Europe’s credit market may go from red hot to merely boiling in 2020. After a banner year for sales of new bonds, the pace of issuance may prove hard to sustain next year because companies have already rushed…

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Sweden’s $8.3bn green bond issuance outstrips Nordic rivals

Public sector green issuance has been overshadowed by Sweden’s local government funding agencies to surpass the total Nordic issuances in 2019. Source: Expert Investor Local government funding agencies have dominated regional public sector issuance. Sweden has issued a whopping $8.26bn in green bonds so far in 2019, equivalent to about half of the total issuance…

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How bonds became stocks and stocks became bonds

Accurate systematic bond pricing becomes the key in solving volatility in bond prices due to stock-like trading Source: Financial Times Bonds have become the new equities, say fund managers, stirring concerns that dangers are lurking in the supposedly safest corners of financial markets. Historically, investors have for the most part bought government bonds for their…

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Greece Bond Issue Talk Resurfaces in Post-election Glow

Greece might issue new debt at lower borrowing cost to pay back IMF loans Source: Financial Post Greece’s debt agency could take advantage of a post-election boost to issue new debt at record low borrowing costs in the coming weeks to repay an expensive International Monetary Fund loan, sources told Reuters on Monday. Two bankers…

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Mistakes by Markets?

Bonds might have overreacted on inflation; “Pay Rises, Not Price Rises” Source: Reuters With yields across the developed world in free-fall, markets appear to have convinced central banks that only drastic monetary stimulus can prevent inflation expectations from evaporating for a lifetime. But might those markets be reading it wrong? If so, policymakers in Japan,…

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Buy Gold, Sell Bonds

Gold rallies in search of safe haven; “bull markets are the authors of bear markets.” Source: Forbes As the first-half of 2019 draws to a close, investors have much to cheer about. A lot of money has been made across many asset classes. If you’re considering tweaking your strategy for the second-half of the year, I have four words for…

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