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).
This material and any opinions contained are derived from sources believed to be reliable, but its accuracy and the opinions based thereon are not guaranteed. The content of this publication is for general information only and is not intended to serve as specific financial, accounting or tax advice. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Please consult legal or tax professionals for specific information regarding your individual situation.
By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them.
Past performance is no guarantee of future results. There is no guarantee investment strategies will be successful. Investing involves risks including possible loss of principal. Investors should talk to their financial advisor prior to making any investment decision. There is always the risk that an investor may lose money. A long-term investment approach cannot guarantee a profit.