Bonds might be useful going forward, but just because they’ve been coming up tails for the last 5 years does not mean they are going to start coming up heads.

There is a lot of hot air in the markets right now – AI hype, predictions of financial doom. How much should you care about the noise? It depends.

I’ve warned twice in the last year that negative carry makes the path to profit an uphill battle. The curve is now >50bps steeper since the first post — if you put the trade on, you’d be directionally right and very slightly poorer. The 2s10s steepener might be a good story, but it’s never been much of a trade.

You'd need to go back to the mid-1990s to find richer credit markets. So, sell credit? Not so fast. Remember, perspective matters.

Dynamic public market strategies operating within a systematic investment framework have the potential to deliver equity-like returns with significantly lower drawdowns. Learn how a more dynamic approach shifts the focus from piecing together a static portfolio to outsourcing relative value decisions to investment managers with the tools and expertise to adapt dynamically within a systematic investment framework—all without sacrificing the liquidity of public markets.

Short-end rates are headed down and the curve is headed steeper. At least that’s the fat part of the distribution of probable outcomes…So, engage the steepener, close your eyes and pop your head out on Groundhogs day? Read more for our view.

Investors have anticipated the eventual dis-inversion of the curve and have sought to capitalize through a “steepener” trade. A profitable trade … at least in theory.

Instead of delivering alpha, the performance of core and core plus fixed income managers is simply a function of having more risk. Read more to learn why we believe that optimizing sector allocation is a more effective way to generate alpha. Spend less time and resources on evaluating idiosyncratic investment grade credit risk and more time and resources on signals that systematically identify when to take less or more risk at the aggregate portfolio level.