Chart of the month
Shailesh Kshatriya is the director of Canadian Strategies at Russell Investments Canada Limited. He contributes insights into the capital markets to help you understand the investment landscape and our investment management process.
A monthly feature with illustration on a specific investment issue, product, or index
Chart of the month archives:
November 2017 - How "unconstrained" could complement core fixed income
Investor behavior can be quite perplexing. Although many bond investors are concerned about interest rate risk, they can sometimes take on increased credit risk to achieve “higher” yields, even as yields have been compressing. Indeed, in the current environment, we are concerned about both interest rate and credit risk. That said, as with most things, a measured approach can be the best way to approach fixed income.
October 2017 - Could investors miss out? the return advantage of core fixed income over GICs
With Halloween around the corner, it seems fixed-income investors have been spooked by the Bank of Canada’s (BoC) gradual “normalization” of interest rates. The subsequent uptick in bond yields resulting in a very modest negative returns in core fixed income strategies1 was a “scare” for which some conservative investors weren’t prepared. While we acknowledge core fixed income may be challenged in the current environment, we are resolute in our view it remains a critical diversifier and therefore integral to a total portfolio approach. Importantly, with heightened global equity valuations and geopolitical risks, core fixed income remains a crucial offset to potentially volatile equity markets.