Rethinking diversification
Why is diversification in fixed income portfolios more important than ever, and what’s the best way to achieve it today? Ellie Clapton and Darpan Harar explore the key considerations in the current environment.
7 minutes
Global
From the income desk
Bonds back in focus
Ellie Clapton and Jason Borbora-Sheen explore the resurgence of bonds as a viable investment class.
24 Sept 2024
7 minutes
Ellie Clapton
Jason Borbora-Sheen
With inflation and growth slowing, and a rate-cutting cycle on the horizon, the opportunity cost of staying in cash has risen. While bonds have become more attractive from a cyclical perspective, structural risks—such as the potential for persistent inflation—remain.
This makes shorter-term holdings, particularly those with increased duration, vulnerable to capital drawdown. Ellie and Jason highlight the importance of a nimble investment approach to managing these risks, including diversification beyond traditional markets. Ultimately, hedging and employing flexible, differentiated strategies are essential to managing duration risk and achieving better outcomes in an uncertain economic environment.
Authored by
Views from the income desk
Making sense of recent market moves
Amid a volatile geopolitical backdrop, risks relating to the US private market and AI disruption have driven big moves in credit markets this year. Co-head of Developed Market Credit, Justin Jewell, and Investment Director, Jared Cook, discuss these themes and consider how credit investors can navigate them.
A different perspective on high-yield markets
Reflecting on recent developments in the high-yield corporate debt market, Ellie Clapton and Darpan Harar provide pointers on how to identify the most attractive investment opportunities.
Rethinking defence in credit markets
In a world of tightening spreads, shifting policies, and rising geopolitical tension, credit investors face increasing uncertainty. Ninety One’s co-head of Developed Market Credit, Justin Jewell, and Investment Director Ellie Clapton explore how geographic flexibility and selective positioning are key to navigating today’s evolving market conditions.
Modernising Defence
Ellie Clapton and Jason Borbora-Sheen unpack why the 60/40 playbook is under pressure, and how to modernise defence for a more volatile world.
Rethinking diversification
Why is diversification in fixed income portfolios more important than ever, and what’s the best way to achieve it today? Ellie Clapton and Darpan Harar explore the key considerations in the current environment.
Beyond correlations: Real considerations for alternatives
Correlation, or the relationship between two assets, is often seen as the holy grail of investors – when one asset goes up, the other goes down, providing investors with a measure of protection. However, as Ellie Clapton and Jason Borbora-Sheen discuss in this video, a singular focus on correlation can be misguided.
Is cash really king?
It’s not a yes or no question argues Jason Borbora-Sheen.
From the multi-asset income desk: reaching the debt ceiling
Ellie Clapton and Jason Borbora-Sheen discuss two key topics on the multi-asset income team’s desk at present. The fallout from US regional banks and the impending US debt ceiling are at the top of the agenda.
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