Yield curve, interest rates, and bond market world

[data-wf-bgvideo-fallback-img] { display: none; } @media (prefers-reduced-motion: reduce) { [data-wf-bgvideo-fallback-img] { position: absolute; z-index: -100; display: inline-block; height: 100%; width: 100%; object-fit: cover; } }

Tactical Fixed Income Framework

type:

Benchmark:

iShares Core U.S. Aggregate Bond

Key facts:

Tactical portfolio allocation across global fixed income sectors

Insights into active management of duration and credit risk

Combination of top-down and bottom-up analysis

Key Objectives:

Explore consistent total return patterns across various interest rate environments

Analyze potential to outperform the global bond benchmark over full market cycles

Understand portfolio stability and income generation concepts from market insight

instruments:

Government and corporate bonds

Mortgage-backed and asset-backed securities

Interest rate and credit derivatives

Methodology:

Yield curve positioning to explore interest rate expectations

Relative value assessment across fixed income sectors

Rebalancing analysis for shifts from QT to QE

risk management:

Diversification across sectors, geographies, and credit qualities

Ongoing credit risk monitoring and analysis

Stress testing under various interest rate and credit spread scenarios

strategy benefits:

Provides insights into potential enhanced returns compared to passive bond strategies

Understand fixed income stream opportunities for capital appreciation

Portfolio diversification impact and risk mitigation insights

portfolio fit:

The Tactical Fixed Income Allocation Strategy typically comprises 30-40% of the portfolio. It serves as a key stabilizer, providing steady income and acting as a counterbalance to more volatile equity strategies.

The strategy's flexible approach allows for tactical adjustments based on changing market conditions, complementing overall risk management approach.