How are fixed income strategies impacted by the market environment?
8 July 2022
We take a closer look at fixed income performance and risk for five main types of strategies: money market, government bond, investment grade credit, high yield credit and relative value.
We analyse historical performance through various extreme market environments, which highlights the benefits and risks of the duration and credit exposures of the more conventional strategies.
There isn’t a clear good or bad market for relative value strategies, but we highlight three links between the broader market environment and performance: 1) extreme low rates volatility is a negative; 2) higher rates volatility is generally positive, but not in all situations; 3) RV alpha is structural, but the mix of opportunities changes with broader supply/demand dynamics.
Please select your location to explore how Ardea IM’s highly differentiated pure relative value investment approach unlocks a universe of fixed income investment opportunities beyond the conventional.
