UBS Asset Management’s Post

Risk assets mostly continued their year-long rally in June as economic data supported further moderate growth and solid employment trends. Positive returns were driven by Relative Value and Credit / Income strategies, while Equity Hedged and Trading strategies were mixed for the month. Stay informed with our monthly bulletin for more insights at https://bit.ly/3SApeGu #ShareUBS #AssetManagement #HedgeFunds

Market update. Risk assets trended upward, driven by strong performance in #Equity Hedged and Credit / Income strategies. Relative Value saw mostly positive returns, while #Trading strategies had mixed results. Get the full details in the report at https://bit.ly/3Zi8SpQ #HedgeFunds #Credit #HFS #ShareUBS Please note that index returns shown in the article are for illustrative purposes only and may not be available for investment. Past performance is not indicative of future results.

In this article we build upon the prior exploration of systematic #credit investing by further exploring the use of #factors in investment-grade corporate bond markets. We contrast two methodologies: #signalblending, which integrates factor signals into a composite score, and #portfolioblending which combines distinct factor-based #portfolios, examining their performance in both high and low-exposure scenarios. Additionally, we investigate if credit market signals, derived from size, risk, value and momentum factors can be leveraged to #trade equities. These factors are constructed exclusively from #bondmarket data to emphasize their information from entity-level information.

Will bonds rally in H2 2024? Find out what Vanguard’s global fixed income experts are saying in our monthly recap of fixed income markets. Read more: https://vgi.vg/45zKilt Capital at Risk.

Hedging Strategies to Cover Liquidity Risk: 1. Diversification: - Diversifying a bond portfolio across various issuers and maturities can help reduce the impact of liquidity risk. Holding a mix of bonds with varying levels of liquidity can provide flexibility in the event of market disruptions. 2. Investing in Liquid Assets: - Allocating a portion of the investment portfolio to highly liquid assets, such as cash or short-term government securities, can provide a source of liquidity to meet short-term funding needs during periods of illiquidity in the bond market. 3. Monitoring Market Conditions: - Keeping a close eye on market conditions and staying informed about economic developments can help investors anticipate potential changes in liquidity and adjust their investment strategy accordingly. 4. Use of Exchange-Traded Funds (ETFs): - ETFs that invest in a diversified portfolio of bonds can provide investors with exposure to a range of fixed-income assets while benefiting from the liquidity of the ETF shares traded on stock exchanges. --------------------------------------------------------------- Liquidity risk is an important consideration for bond investors, as it can impact the ease of buying or selling bonds at fair prices. Market conditions and certain bond characteristics can contribute to liquidity risk. Diversification across different bonds and maturities, along with a focus on investing in liquid assets, can help mitigate liquidity risk in a bond portfolio. Additionally, closely monitoring market conditions and considering the use of ETFs are valuable strategies for managing liquidity risk. While it is essential to be mindful of liquidity risk, investors should remember that bonds are generally considered more liquid than other types of investments, such as real estate or private equity. Seeking advice from a qualified financial advisor can provide valuable insights and guidance on managing liquidity risk and constructing a well-diversified bond investment strategy. #legaltips #legalmatters #law #strategy #fdi #investments #equity #equityinvestments #familyoffice - - - - - Extracted from my latest book «The Global Manual of Foreign Direct Investments», Volume 1, Chapter 2.25, Pag. 185 Author page: https://lnkd.in/eRnByQca

Check out our latest market commentary on the preferred securities market. With yields still elevated relative to history, preferred securities offer attractive income opportunities. Log on to our website to read more. #SolisWealthUpdate #MarketCommentary #EmbracingPurpose #ImpactingLives https://lnkd.in/gZEa-Fjp

Tactical asset allocation has always been viewed with immense scepticism by fixed income benchmark investors. Typically, access has been difficult - either for operational reasons or high costs. In the case where solutions have existed, they have tended to either be partial (largely focused on managing duration risk) or introduce latent risks into the portfolio due to position mis-matches. In our latest paper 'Democratizing tactical allocation and expanding the CTA universe', we discuss how investors can use four credit futures based on Bloomberg Fixed Income benchmarks, to systematically incorporate elements of tactical asset allocation (TAA) into their long-only fixed income portfolios. Another application is the use of these credit futures in global macro strategies - which have traditionally had to rely on Treasury futures to populate the fixed income sleeve. The research can be found on the Bloomberg Terminal: https://lnkd.in/dDcQMThC If you'd like to discuss this material further, do get in touch with any of the authors. #benchmark #TAA #credit #fixedincome #bloomberg

BBBs and BBs offer the best risk-adjusted returns in credit over the long run. Also, fallen angels have historically been one of the best opportunities in fixed income. Check out our latest blog post to learn more and see how you can track these strategies with Bloomberg indices.

Will bonds rally in H2 2024? Find out what Vanguard’s global fixed income experts are saying in our monthly recap of fixed income markets. Read more: https://vgi.vg/3Xt06EE Capital at Risk.

Will bonds rally in H2 2024? Find out what Vanguard’s global fixed income experts are saying in our monthly recap of fixed income markets. Read more: https://vgi.vg/3Vx0wY3 Capital at Risk.