Sentences with phrase «bond factor strategies»

One way that bond factor strategies try to improve returns is by balancing those risks.

Not exact matches

As we pointed out in our post last week, a withdrawal rate strategy should respond to market factors like equity valuations and bond yields as well as personal factors like age, retirement horizon, and expectations about pension and Social Security benefits.

Their main performance metric is 7 - factor hedge fund alpha, which corrects for seven risks proxied by: (1) S&P 500 Index excess return; (2) difference between Russell 2000 Index and S&P 500 Index returns; (3) 10 - year U.S. Treasury note (T - note) yield, adjusted for duration, minus 3 - month U.S. Treasury bill yield; (4) change in spread between Moody's BAA bond and T - note, adjusted for duration; and, (5 - 7) excess returns on straddle options portfolios for currencies, commodities and bonds constructed to replicate trend - following strategies in these asset classes.

Valuations are as important in the performance of factors and smart beta strategies as they are in the performance of stocks, bonds, sectors, regions, asset classes, or any other investment - related category.

The Fund may complement traditional bond strategies, as investments have historically been driven by issuer - specific fundamentals over general macroeconomic factors.

Stocks and bonds behave differently in most market environments and the resulting low historical correlation between the two has been an important factor in many investment strategies.

From a practical standpoint, in terms of being able to translate academic findings into actual investment strategies, 4 factors or «premiums» have been found within stocks and successfully implemented (there are 2 factors that drive the behavior of bond prices):

Dimensional's bond strategies get less attention, but again the funds are engineered to get broad exposure to specific risk factors — in this case, maturity and credit quality — with no attempt to forecast interest rates.

Instead, they are very long term investors who have developed their own unique set of rules, and Dimensional Indexes, that are focused on the factor research of Fama, French and other academics, as well as internal trading rules - based strategies that minimize market impact costs and capture liquidity premiums for being a patient buyer and seller of stocks or bonds that meet their rules of construction.