The return investors expect for accepting credit risk is often thought of as the credit spread, minus the cost of downgrades and defaults.
But that neglects the significant benefits that can come from credit spreads tightening as bonds get closer to maturity, also called credit rolldown.
Fixed income
TIPS (Treasury Inflation Protected Securities) are US inflation-linked bonds, but should they also play a role in UK defined benefit (DB) schemes’ portfolios? Our new research challenges some conventional assumptions about inflation hedging a DB scheme, and explains how TIPS could help reduce risk as well as boost returns.;
Fixed income
Within less than 24 hours of each other, the European Central Bank (ECB) and the Bank of England (BoE) have announced they will inject similar amounts of cash into the economy –around 9% of their respective GDPs. Hetal Mehta, Senior European Economist, looks at what it means when central banks go “all in”.;
