Bond Investing in the Current Market
Marlena Lee, Global Head of Investment Solutions at Dimensional, offers an overview of the US and global bond markets and discusses how investors can pursue higher expected returns while managing risks in a low-yield environment. Her discussion covers the principles of bond investing, with an emphasis on monitoring credit quality and default rates. She also describes a systematic approach to bond investing.
Recording Time Stamps
(04:02) Bond returns, yields, and interest rates
(10:10) Government bonds and recent performance
(13:37) How have corporate bonds with different credit qualities perform?
(21:02) Municipal bonds in the current environment
(27:22) Who determines credit ratings for bonds?
(31:54) Dimensional’s flexible trading process and its value add
In the second of a two-part series, Kaitlin Simpson, CFA and Researcher at Dimensional, further explores principles of bond investing and factors to consider in the current market. During the broadcast, she will discuss the components of a bond’s returns, using global bonds to expand the opportunity set for investors, and the importance of incorporating flexibility in the design, management, and trading of fixed income portfolios. Jake DeKinder, Head of Client Communications, hosts the webcast.
Recording Time Stamps
(00:55) If I invest in bonds, what can I expect to receive?
(08:37) Future rates are unpredictable: picking winners, avoiding losers
(12:01) Using information in bond prices vs. an index approach
(15:04) Diversification is your friend: U.S. bonds are only one-third of the global bond market
(19:10) Are high yield bonds riskier? Are global bonds riskier?
(24:16) Benefits of flexibility when managing bond funds
Beacon Hill Private Wealth is an independent, fee-only, fiduciary investment advisor providing evidence-based wealth planning solutions that simplify our clients' financial lives. Founder Tom Geoghegan, CFP®, CIMA®, CPWA®, RMA® is also a member of the National Association of Personal Financial Advisors (NAPFA).
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