Hiring a dedicated manager for the transition of equity portfolios is now considered best practice for both asset managers and asset owners alike. Yet still today fixed income transitions are often left unmanaged. Despite the opaque nature of fixed income markets, many of the trade- and risk-management practices in equity transitions have proved effective in fixed income transitions as well. Regardless of the asset class involved, asset owners should always seek to manage an investment transition in a manner that is consistent with the principles of prudence and due diligence.

The paper compares and contrasts equity and fixed income transitions, advocating for a specialist approach while answering the following questions:

  • Why hire a fixed income transition manager?
  • Are fixed income transitions unique?
  • Do transition managers add value in fixed income events?
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