Passive Fixed Income Strategies

The active versus passive management debate has always been an intriguing one in fixed income.

Passive fixed income strategies. Should you use both in fixed income. While passive management does seem to make sense in some equity markets we do struggle to see a compelling argument for passive management in fixed income when better performing active strategies are so readily available particularly in a low interest rate environment. When contemplating passive strategies versus research driven fixed income portfolios investors should also consider among other things each portfolio s investment objectives and policies risks tax implications from portfolio turnover and expenses. However broad market passive fixed income strategies put investors in the way of rising rates.

3 sectors not included or underrepresented in the barclays aggregate include commercial mortgage backed securities collateralized loan obligations. Before i dive into my favorite ways to earn money without a lot of work i want people to know the two reasons i love this topic so much. And while in some sense this is true the volatility of most fixed income investments is lower than that of equities this does not mean that a passive fixed income investment. This can also be true even with short duration.

10 passive income strategies to try in 2019. At himco our dedicated passive fixed income management team seeks to achieve full replication of the performance of the given index through qualitative and quantitative techniques while managing portfolio cash flows and index events in the most cost effective manner. While passive management does seem to make sense in some equity markets we do struggle to see a compelling argument for passive management in fixed income when better performing active strategies are so readily available particularly in a low interest rate environment. On the one hand the allure of cheap market exposure to a low volatility asset class is tempting.

As an active fixed income manager we welcome the dislocations and opportunities created by the growth of these strategies. Passive fixed income strategies.