Investors pursuing alternative risk premia strategies in light of structural changes in fixed income and equity correlations should consider nuances in the characteristics of these investments even if they mirror historical correlations, experts have said.
There’s a definite move towards rebuilding and steering economies in a new direction, rather than just managing through a crisis, fixed income experts have highlighted at this year's Fixed Income & Credit Forum.
What happens during the unwinding of central bank policy is uncertain but presents a good opportunity for fixed income investors with a global perspective as countries move away from synchronised rates in potentially uneven fashion.
Traditional fixed income sleeves will take an entirely different shape in the post-pandemic era, with the allocation of negative bond yields and cash investments hard to justify in portfolios according to Sunsuper head of asset allocation Andrew Fisher.
Low inflation will be one of the key characteristics of the challenging macro economic environment that lies ahead, due largely to the ageing population leading to weaker aggregate demand, PGIM Fixed Income's Nathan Sheets says.
Private equity is taking over the lending ranks from the banks, says Lonsec analyst Ron Mehmet. As volatility tapers off again, demand for alternative fixed income yield in Australia is making alternative avenues more and more attractive.