What Fixed Income Managers Are Thinking Now

The past year has provided no shortage of major changes in the market for fixed income managers to assess. As one example, a year ago many expected multiple rate hikes by the Federal Reserve. Now, almost all forecast additional rate cuts before the end of the year. To better understand the current market climate, we conduct regular […]

Hunt for Yield Drove Bonds in 2nd Quarter

In the United States, fixed income investors continued to hunt for yield in this low-interest rate environment, while non-U.S. bonds benefited from a weaker U.S. dollar. Emerging market bonds also benefited from both the hunt for yield and the dollar’s decline. Corporate bonds performed best in the second quarter on strong demand. Investors continued their […]

How DTS Helps Us Evaluate Bonds

View Our Paper Evaluating bonds and fixed income portfolios can be complex and challenging, and to help make that process easier I developed a way for Callan to use a metric developed by practitioners called DTS, or duration times spread, which measures systematic exposure to credit risk. DTS is similar to equity beta, which measures […]