Explore the concept of "risk premium" in our current financial landscape where Money Market Fund rates exceed 5% and US debt yield curves are inverted. Are traditional approaches leading investors astray? 🤔 Join the conversation on recalibrating strategies and embracing a new perspective 💼💡 #Investing #FinanceInsights #RiskManagement #MarketTrends #ai https://lnkd.in/gW44uMMa Sultan M. Nick Reese Jimmie Lenz
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For those prioritizing low volatility, visibility, and a degree of capital appreciation not available within money markets, we believe a logical destination along the risk spectrum will be fixed income, namely the front end of the yield curve and the higher quality corporate credits that reside there #InvestingInvolvesRisk
Outpacing money markets: The historical yield advantage of short-dated bonds
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With tokenization on the rise and institutional investors like BlackRock plunging headfirst into RWAs with their BUIDL fund, it's important to understand the real-world financial products that are being brought onchain. Check out this summary of Fixed Income products by Centrifuge!
If you're interested in tokenized assets, it's essential to understand real-world financial products! In this article, we summarize the Centrifuge Credit Group's asset primers on U.S. Treasuries, U.S. Corporate Bonds, and Asset-Backed Securities ↓ https://lnkd.in/e2rR2VPV
Understanding Fixed Income Products
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Keep up to date on market movements with this week's Three Pointer! : : : All disclaimers linked in bio #pavefinance #financialeducation #financialliteracy #smartinvesting #wealth #wealthmanagement https://lnkd.in/eUqzCMxQ
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Leveraging Technology and Data Analytics to Deliver Innovative Solutions in Financial Services | Passionate About Transforming Client Experiences and Driving Business Growth | IE Business School MBA
"It may be a good time to speak with your Financial Advisor about other opportunities in the fixed income markets. For example, reallocating money from short-term cash equivalents, such as money market funds, to fixed income with longer durations may allow investors to lock in current attractive yields on assets that are still relatively low risk." #wealthmanagement #fixedincome #investing
Reconsidering Money Market Funds as the Fed Cuts Rates | Morgan Stanley
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From Smart Wealth Advisory: "The landscape of the municipal bond market has recently illustrated a fascinating juxtaposition between its performance and that of U.S. Treasury securities, providing a rich area for analysis. This article will delve into recent trends observed in t..." https://lnkd.in/evhjXs6H
Assessing Recent Trends in the Municipal Bond Market: A Critical Overview
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It’s time to lock in these yields… while you still can 🔗 Read the full article on our Fixed Income Insight Centre: https://lnkd.in/evs-c9QE Author: Ben Deane, Investment Director, Sterling Investment Grade, Fidelity International #yields #FixedIncome #MonetaryPolicy #InterestRates
It’s time to lock in these yields… while you still can | Portfolio Adviser
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Vice President, Retirement Advisor Consultant at PIMCO (Territory: DC, DE, E. PA, MD, NC, NJ, VA, WV)
Group CIO Dan Ivascyn discusses why we’re prioritizing high quality assets with sufficient liquidity over the cyclical horizon. Read our latest Income Q&A. https://bit.ly/3Mc2rgA #IncomeStrategy #HighYieldInvesting #GlobalOpportunities
Income Strategy Update: High-Yielding, High Quality Global Opportunities | PIMCO
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Strategists: It’s Time to Start Locking In Duration Duration is a measure of interest-rate sensitivity and is often used when discussing bond maturities. Longer-term bonds have greater duration then shorter-term bonds. #bonds #investments #duration
Is It Time to Ditch Your Money Market Fund for Longer-Term Bonds?
morningstar.com
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Explore the insights from PIMCO on navigating public and private credit markets. In this article, Mohit Mittal discusses the key factors of liquidity, risk, and return potential in comparing public fixed income and private credit markets. Learn about the current opportunities and challenges in these markets, and understand the importance of asset selection in today's economic environment. https://lnkd.in/ek8v9Y8d #PrivateDebt #PrivateCredit
Navigating Public and Private Credit Markets: Liquidity, Risk, and Return Potential | PIMCO
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From the FT this morning--my thoughts on how (1) high yield is the new investment grade (less risky) and (2) private credit is the new junk--but with important structural features that should help curtail default-loss in the next down cycle. https://lnkd.in/eieu_5rV
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Good read. I've seen other attempts to adjust risk premiums by varying the duration of the assumed risk-free rate, and as in this piece, the reference can be attributed to the segmentation of the yield curve and how investors select strategy. The only counter to this thought is that many if not most institutional investors are locked into a particular segment of the curve by their investment mandates or rules dictating asset/liability matching. This (just IMO) relegates using shorter duration yields to compute risk premia to that "additional piece of information" that can help identify turning points in the market, but I would suggest that in a normalised yield curve environment, the analysis would regress to something out around the 10yr.