Negative Rates: We (Still) Do Not Want or Need Them
May 21, 2020
Europe continues to be the poster child for understanding why central banks should avoid negative rates as a policy tool.
Following the bond market’s recent beating, term yields have already priced in aggressive Fed rate hikes, positioning core bonds to effectively diversify credit risk.
An effective factor investing strategy should be both contextual and adaptable as markets change over time.
Strong funded ratios and higher interest rates are prompting many corporate pension plan sponsors to shift assets to LDI strategies.
Europe continues to be the poster child for understanding why central banks should avoid negative rates as a policy tool.
Commercial mortgage loans, securitized assets and private placements can help plan sponsors diversify their exposure to long corporate bonds.