Sentences with phrase «bond managers try»

Active bond managers try to hold shorter maturities than their benchmark when rates are rising, and longer maturities when rates are falling.

Not exact matches

Also, a bond fund is only going to have so much cash on hand, so if the investors in a certain fund all want to redeem their shares of the fund at the same time, it will pose problems for the fund manager trying to meet redemption requests.

As older bonds mature, newer bonds are purchased and the portfolio manager of the fund generally tries to keep the average maturity in the range that is stated in the fund's objective.

In the old days of bond investing, you would pick a bond fund with a narrowly defined mandate, like «medium - term corporates,» and the bond manager would spend his life trying to outperform the stated benchmark.

In 1994 to early 1995, that illusion was destroyed as the bond market was dragged to higher yields by the Fed plus mortgage bond managers who tried to limit their interest rate risks individually, leading to a more general crisis.

The unconstrained strategy can be thought of in two ways: always trying to earn a positive return with high probability (T - bills are the benchmark, if any), or being willing to accept equity - like volatility while the bond manager sources obscure bonds, or takes large interest rate or credit risks.

Since bond index funds simply deliver the returns of the overall market — and there's no fund manager trying to forecast interest rates — they would crash too.

Back when I was exclusively a bond manager, 2001 - 2003, which I chronicled in my series «The Education of a Corporate Bond Manager,» I successfully struggled with one concept: when do you try to add more yield to your portfolio, and when don't bond manager, 2001 - 2003, which I chronicled in my series «The Education of a Corporate Bond Manager,» I successfully struggled with one concept: when do you try to add more yield to your portfolio, and when donmanager, 2001 - 2003, which I chronicled in my series «The Education of a Corporate Bond Manager,» I successfully struggled with one concept: when do you try to add more yield to your portfolio, and when don't Bond Manager,» I successfully struggled with one concept: when do you try to add more yield to your portfolio, and when donManager,» I successfully struggled with one concept: when do you try to add more yield to your portfolio, and when don't you?

When I was a bond manager, dealer desks would often try to sell or buy bonds off of unusual benchmarks.

I suspect that the writer is a bond fund manager and is probably trying to protect his turf.

Instead, bond ETF managers use a «sampling» approach where they try to replicate the risk and return characteristics of the index using a smaller portfolio of available bonds.

That said, it was even more precious when I tried to explain what I did as a corporate bond manager to my kids seven years ago (100 phone call per day), and the then eight - year - old said, «It's like ordering pizza all day, right?»

There was a division of labor — credit analysts would opine on the likelihood of whether a company was «money good,» and portfolio managers would try to decide relative value, analyze structure issues, and figure out whether the bond fit client needs.