Focusing on the Three C’s for Fixed Income Investing
December 1, 2020 — Fixed income investors have benefited from falling rates and a recovery in spreads, which has generated attractive returns thus far in 2020. As we approach the end of this unexpected year, a more prudent and active approach is necessary as the backdrop has become more challenging – valuations are less compelling; yields are low and are expected to remain so; and, as illustrated in the chart below, the duration of fixed income indices is high for the slim cushion of yield they provide. As active fixed income managers, we are focused on three C’s – curve management, (yield) carry, and the consumer-led recovery.
Featured Insights
Fixed Income
Credit Spread Dispersion Between Cyclical and Non-Cyclical Industries Reveals Opportunities
While corporate credit spreads flatlined in August, Sage sees opportunities among select consumer cyclical sectors that have yet to fully recover.
Tactical ETF
Tactical Investment Strategy, November 2020
We are looking beyond election-related volatility and are focused on four pillars of the recovery . . .