Investors have never known a period of sustained rising interest rates, but that era is coming to an end. Given the central role of global fixed income, particularly US markets, in most investor portfolios, managing this transition is among the most pressing challenges.
Philip Moffitt, head of fixed income for Asia Pacific at Goldman Sachs Asset Management, explains in this webcast how investors can take advantage of a more volatile environment for interest rates.
Predicting US interest rates could rise by more than 1% over the coming year or so, and with coupon rates in structural decline, the damage to capital returns in orthodox, long-only portfolios is clear. Moffitt explains how a flexible approach can provide better answers than simply turning defensive by slashing duration.
GSAM’s unconstrained strategy is more than just diversification: it involves reshaping benchmarks from bond market caps to cash. This strategy may not begin as a core exposure, but it can provide countercyclical protection against losses in traditional fixed-income portfolios.
In a dialogue with Jame DiBiasio of AsianInvestor, and taking questions from a live online audience, Moffitt tackles issues that include portfolio construction, how to play Asian credit markets, and how policy and economics in the US and China will impact fixed-income exposures.
To listen to a replay of the conversation click here.
For more information on Goldman Sachs Asset Management and fixed income investing, click here
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