Edward C.’s Post

After a false dawn last year, 2024 has finally proved to be the 'year of the bond' as a record $600 billion+ has flowed into global fixed income funds. Investors have raced to lock in the high yields on offer on corporate and government debt as central banks lower interest rates, and have shown a clear preference for passive exchange-traded funds that can be traded throughout the day. Data from EPFR shows that $617 billion had flowed into developed and emerging market bond funds by the middle of December. That tops 2021's $500 billion of inflows and puts 2024 on track to be a record year, EPFR said. "The story is income," said Vasiliki Pachatouridi, head of EMEA iShares fixed income strategy at BlackRock. "We are seeing the income being put back into fixed income. We haven't seen these levels of yields in almost 20 years." Largely passive exchange-traded funds were on track for a record year with $350 billion of inflows by the end of November, according to Morningstar Direct data. PIMCO, traditionally known for its active management, has also had a strong year. It has drawn around $46 billion into its bond funds, according to Morningstar estimates, after shedding some $80 billion in 2022. https://lnkd.in/eUpBgNgn

Two GAM fixed income strategies featured in ii’s ‘Top 10 bonds funds’ of 2024’ list GAM’s Cat Bond and Credit Opportunities strategies have been listed on Interactive Investor’s analysis of the best-performing bond funds available on their UK-based platform in 2024. • GAM Cat Bond strategy – ranked among the very top performers, reflecting our management team’s expertise in catastrophe bond portfolio management. To read the team’s 2025 cat bond outlook, click here https://ow.ly/pUH550UFfyq • GAM Credit Opportunities strategy – delivering double-digit returns, it features as one of the leading credit-focused bond strategy products of 2024. To learn what our managers believe lies in store for 2025, click here https://ow.ly/9xmp50UFfyp The success of these strategies is testament to GAM’s commitment to provide access to great investment talent, aiming to deliver attractive returns for clients through specialist active and alternative investment. To read ii’s article in full, please click here https://ow.ly/1gor50UFfyr #Investing #ActiveManagement #FixedIncome #CatBonds #Credit Marketing Communication | Capital at Risk

Our Director of Fixed Income and Investment Strategy, Jonathan Sheridan, speaks with Juliette Saly from ausbiz about recent developments in the fixed income space. He discusses how the team at FIIG is positioning portfolios to add selective credit duration risk and the types of bonds that are being added to achieve this. The geopolitical backdrop also plays a key role in this decision-making process, as Biden's withdrawal from the US presidential race has altered expectations, influencing a shift in equity markets from large to small caps. He suggests that amidst uncertainties, having long-duration government bonds in one's portfolio is ideal due to their role as a risk-free shock absorber. He also highlights the significant amount of interest in newly issued bonds, ANZ and Santander, with Santander almost seven times oversubscribed! Watch the discussion here: https://bit.ly/4d8Vf0g

The fixed income default study. Read the examination of UBS Asset Management’s bottom-up default outlook and total return forecasts for 2025 here: https://bit.ly/3CcWgHI #investing in fixed income #markets with #ubsetf & index funds.

Can bond investors find the right opportunities? https://lnkd.in/ecVcdHCH. Discover more at Savvy Investor. “Bond investors who are overly focused on individual data points may lose sight of the bigger opportunity picture.” These were the opening words of AllianceBernstein’s Head of Fixed Income in his recent blog post regarding the direction of debt markets. They contain a certain amount of truth. Allocators interested in this space need to be able to contextualize individual data points within the broader macro landscape. This selection of insights is designed to help investors do just that. #bonds #debt #debtmarkets #bondmarkets #inflation By... Wellington Management, Legal & General Investment Management (LGIM), BNP Paribas Asset Management, Fidelity Investments, Invesco Ltd., MetLife Investment Management, Amundi, ICMA - International Capital Market Association & CFA Institute Research Foundation.

For professional investors only. Fixed Income Portfolio Manager Campe Goodman explains why incorporating deep research and taking an active approach is, in his view, the most effective way for fixed income investors to uncover credit opportunities in today's more volatile market environment. #fixedincome #credit #activemanagement

Financial Times reports companies are rushing for corporate bond issues ahead of market volatility foreseen from the US presidential election. Corporate borrowers have issued $606bn worth of dollar bond so far this year, 2024, up by ⅖ compared with the same period last year, 2023, and highest total since 1990, according to LSEG (London Stock Exchange Group) data. Teddy Hodgson, co-head of Morgan Stanley’s global investment-grade debt syndicate said, “We’re running circa two months ahead of what I would consider a normal type schedule for investment-grade issuance, I certainly think the election is a driving force for all of this supply.” Overbond provides the best executable pricing feed to tackle the problem of heightened market volatility and variable liquidity of corporate bonds through client-side data aggregation. This involves aggregating data feeds from various providers such as composite data feeds, transcribed data from chats and voice, records of past trades in order management systems, and post-trade regulatory feeds.  Read more here: https://lnkd.in/gvJ-wsFc #FixedIncome #Trading #CorporateBonds #Bonds #ArtificialIntelligence #AI #BondTrading #QuantitativeAnalysis #Fintech #FinancialTechnology #CapitalMarkets #Investing #DebtCapitalMarkets #FinancialInnovation #MarketData #BondMarket #FinanceTech #RiskManagement #AssetManagement #FixedIncome #Trading #CorporateBonds #bonds #QuantitativeAnalysis

Diversification is just as critical for bonds as it is for equities. Help bring fixed income into focus for your clients by sharing this helpful visual.

Fixed Income Securibes (FIS) are generally understood as investments offering safe, predictable returns, and little to worry about. But after working closely with structured investment products, I've realized there's so much more beneath the surface 1️⃣ Risk Isn't Always Obvious. Not all bonds are "safe". High-yield debt can offer double-digit returns, but credit risk, interest rate fluctuations, and liquidity constraints make a huge difference. A well-researched, balanced approach matters more than just chasing yields. 2️⃣Due Diligence is Everything. Looking at credit ratings alone isn't enough. Assessing issuer credibility, financials, and market trends is crucial. The best opportunities often lie in overlooked details 3️⃣Liquidity Can Make or Break Returns: Unlike stocks, where exits are relatively easier, bonds can have liquidity constraints. Understanding when and how to enter or exit a position es key to maximizing returns 4️⃣Passive Income with Active Management: Fixed income isn't just about buying and forgetting Active management -timing reinvestments, diversifying issuers, and optimizing interest payoots- can significantly improve long-term results The right mix of risk assessment, research, and strategy can unlock steady, inflation-beating returns while maintaining stability Would love to hear how others think about investing in Fixed Income securities as opposed to the equity instruments! #Investing #finance #fixedincome #bonds #stockmarket #wealthbuilding