Income Asset Management (IAM) proposes two model portfolio solutions for wholesale investors.
The two models provide investors with a conservative and transparent portfolio allocated to;
(i) Wholesale Investment Grade (WIG) Model
(ii) Tier 2 (bonds) Model
These portfolios aim to generate a higher risk-adjusted income stream, whilst preserving capital.
Portfolio Construction
We believe the case...
From Harvey Bradley, Senior Portfolio Manager at Insight Investment
High real policy rates provide flexibility to cut
With inflation having declined significantly from peak levels, real policy rates have moved from deep negative territory to the highest levels seen since before the global financial crisis (see Figure 1). It is difficult to...
A trade war is not good for anyone. If it materialises there will be negative implications for inflation and growth. This is likely to impact both markets and individual company performance. It won't solve the US's trade issues either. But investors are in wait-and-see mode until the details of President-elect...
As we look ahead to 2025, the forces that drive global credit are rife with mixed signals and extreme valuations. As evidenced over the last year, an unconstrained approach to credit investing can utilise a tactical approach, which has the potential to generate alpha amid dynamic market conditions.
Investors have...
The Australian bond market just had its best third-quarter performance since 2011 and the strongest start to a year since 2020. But while investors may be eagerly anticipating a rate cut from the Reserve Bank of Australia (RBA), playing the waiting game can be a risky strategy.
Timing the stock...
For some investors, credit spread valuation may be perceived as a major headwind for fixed income. But we are of the view that the outlook for fixed income total returns remains robust in the period ahead despite the current level of spreads, which looks stretched by historical standards. This...
When investing in bonds, two common avenues are buying bonds directly Over the Counter (OTC) or buying bond Exchange-Traded Funds (ETFs). Both methods offer exposure to fixed income markets but differ significantly in terms of how they function, the risks involved, and the benefits they provide. This article explores...
PGIM Fixed Income chief investment strategist and head of global bonds, Robert Tipp, CFA, and Tom Porcelli, chief U.S. economist share their views on the latest rate cut by The Fed.
The Federal Reserve stayed the course with a 25 bp rate cut on Thursday and a firm reiteration of...
Markets have responded as expected to Donald Trump's victory – higher Treasury bond yields, firmer equities, and a stronger dollar. It is a re-run of 2016. In 2016, 10-year Treasury yields bottomed in July and rose 50 basis points (bp) before the election. They shot up another 85bp in...
From Mawer Credit Team
When this piece was being written, Boeing had not filed their US$25 billion shelf prospectus and the company was a downgrade candidate to high yield (HY) at both Moody's and S&P which would qualify them as a "Fallen Angel". The term “Fallen Angel” is often paired...
