Whether as part of strategic core equity allocation or as a complement to or replacement of a more traditional buy-and-hold stock or bond allocation, the managed risk 2.0 approach offers a useful tool to help market participants as they seek to achieve long-term return goals while effectively managing risk.
The size of the SSA market in Australia is evidenced in the S&P/ASX Supranational & Sovereign Bond 0+ Index, which shows that SSAs account for 15% of the broad S&P/ASX Australian Fixed Interest 0+ Index. Approximately 37 issuers are SSA and have issued, in aggregate, AUD 139 billion in debt across 175 lines.
Tracking the Boomers... and Beyond
In any home construction project, chances are a ladder will be used to reach a higher point.
In low-interest-rate environments with narrow credit spreads, preferred stocks behave similarly to bonds. In periods of high volatility, they behave more like stocks. When used as a complement to traditional fixed income asset classes, preferred securities may provide an opportunity for enhanced total return, while potentially reducing overall volatility.
With more and more eyes on the bond market, S&P Dow Jones Indices launched the S&P 500 Bond Index, a corporate-bond counterpart of the iconic S&P 500.
Among the many acronyms in the arena of fixed income securities resides real return bonds (RRBs). RRBs, or “real bonds,” are fixed income securities issued by the Canadian government and some of its provinces.
The following analysis shows how real assets may provide inflation protection and affect portfolio diversification in different markets around the world, including Australia, Brazil, Canada, China, the Eurozone, Japan, Mexico and South Korea.
A high-yield corporate bond is basically a loan made to a corporation issuing a debt security.
The S&P Real Assets Index gives investors an innovative yet simple tool that may improve diversification and inflation protection while meeting the risk requirements of today.
Beginning in April 1953, interest rates increased steadily until they reached a pinnacle in the early 1980s. Since then, bonds have been having an impressive bull run.
Why is infrastructure investing becoming important?
The right balance of inflation and economic growth is important for a healthy economy.
The total size of the corporate bond market in China, as tracked by the S&P China Corporate Bond Index, currently stands at CNY 7.58 trillion.
Asian fixed income ETFs recorded positive YTD inflows and they currently represent USD 9 billion in assets.
S&P Dow Jones Indices delivers a wide array of investable and benchmark indices that measure constantly evolving financial markets—globally, regionally and locally. Our indices provide the tools investors need to gauge markets and chart their investment course. And since investors around the world have varying needs, our spectrum of index offerings also extends throughout Pan Asia.
Investing in bonds can help diversify an investment portfolio's risk and simultaneously provide a steady source of income.
The risks, yield, and diversification potential of this key asset class explained.
Historically, international bonds have been overlooked by U.S. investors. Deemed too difficult to invest in or not worth the additional risks, international bonds have typically been disregarded in traditional portfolio allocations, which usually consist of U.S. stocks and bonds with a modest allocation to international equities.