SS&C Technologies’ Post

With recent volatility in default rates and credit spreads, here's what insurers can do to manage and hedge against this risk in their investment portfolios. https://ow.ly/b8Kv30sG1Ao

With recent volatility in default rates and credit spreads, here's what insurers can do to manage and hedge against this risk in their investment portfolios. https://ow.ly/laTg30sGaLN

With recent volatility in default rates and credit spreads, here's what insurers can do to manage and hedge against this risk in their investment portfolios. https://ow.ly/Lo2K30sG2SU

How the Yield Curve changed in the past 1 year... With the MPC - Monetary Policy Committee (RBI) poised to change direction, investors who have been investing in very short-term securities may soon face "reinvestment risk." Given the shape of the yield curve today, one of the most common questions we receive is, "Why should I buy a longer-term bond when I can get a higher or similar yield with a shorter-term one?" It may seem counterintuitive, but it can make sense to buy a bond with a longer time to maturity but a similar yield vs. one with a shorter maturity. The reason is that an investor can have greater control over their cash flows, rather than being subject to reinvestment risk—that is, the risk of having to reinvest a maturing security at a lower interest rate in the future. This may be especially worth considering now, when the MPC appears poised to halt.

Investors with higher risk appetites may view interval funds as a way to help boost return potential. Learn about the pros and cons of these funds.

As the outlook for interest-rate cuts remains uncertain, our Head of Global Multi-Sector Fixed Income Christopher M. Chapman, CFA, looks at how investors can manage interest-rate risk. Learn more here: https://bit.ly/3vU6iKH #FinancialMarkets #FixedIncome #InterestRates

#InvestorStrategy: Though markets wobbled at the beginning of the month, risk appetite and optimism came back in a hurry. The path ahead remains uncertain with the fog of the election all around. Regardless of the limited visibility, markets appear cautiously confident. https://lnkd.in/d6mVaeWu #RichardsonWealth #WealthManagement #Investing

Why have high yield bonds have become a mainstay of many institutional investors’ portfolios in recent decades? In this white paper, we introduce the asset class and discuss the three major risks inherent in high yield bonds: liquidity risk, default risk, and interest rate risk. In addition, we analyze return behavior, volatility, and evaluate the case for high yield bonds by comparing their use in a strategic and tactical context. Read more: https://lnkd.in/d9z4P4US Disclaimer: https://bit.ly/3hJJP7G #InstitutionalInvesting #FixedIncome

Watch our Head of Systematic Fixed Income Paul Benson argue that with bond yields seemingly nearing the top of the rate cycle and economic growth potentially moderating, high yield corporate bonds could be more attractive for your risk asset allocations than equities: https://bit.ly/49wUdtf