Tag Archives: fixed income

Green Bond Issuance Doubled in 2017

Gross issuance of green bonds reached USD 157 billion in 2017, nearly double that of the previous year. Fourth quarter issuance was the fastest quarterly pace on record, adding USD 48 billion, 30% more than seen in each of the previous three quarters. Issuers and issuance types continue to diversify. Asset-backed security (ABS) issuance had Read more […]

Low Volatility Effect in the U.S. Preferred Stock Market

The low volatility effect in equities refers to the findings that stocks that previously exhibited lower realized volatility outperform those with higher volatility as well as the broad based market on a risk-adjusted basis. It has been well documented in academic and practitioner research, and we have also seen widespread adoption in investment product offerings Read more […]

How Much Will My Retirement Income Cost? Part 2

Understanding how much future spending, or consumption, an investor’s savings can support is critical in planning for retirement. As we discussed in part 1, the S&P STRIDE Index Series can help by providing a framework for estimating the annual income stream available in retirement using the concept of the Generalized Retirement Income Liability or “GRIL” Read more […]

Laddered Protection

Continuing the theme of rising interest rates and following up from my last blog, “With all the News of Higher Interest Rates, Don’t Forget About Floating-Rate Debt,” bond laddering is a strategy that provides increased income and the ability to adjust the stream of income in a rising-interest-rate environment. The approach is to invest in Read more […]

How Much Will My Retirement Income Cost? Part 1

Gaining clarity around the future spending, or consumption, that an investor’s savings can support is critical in planning for retirement. Being armed with information about retirement preparedness can inform one’s decisions about savings rate, expense budget in retirement, and investment selections. A first step towards solving this challenge is to understand how much retirement income Read more […]

With all the News of Higher Interest Rates, Don’t Forget About Floating-Rate Debt

The story line for a number of years now has been the “search for yield” and how the recent low-interest-rate environment has been forcing investors down in credit or out the maturity curve in an effort to maintain income though adding risk. Now that interest rates have begun reversing the low-rate environment, fixed-coupon securities may Read more […]

As Volatility Returns to Equities, Corporate Bond Spreads Tighten Near Record Lows

Broad-based equity markets have been on a rollercoaster ride since Jan. 30, 2018, as market participants appear to be reassessing the impact of inflation and potential consequences from the recent tax reform. While volatility appears to be back, high-grade corporate bond spreads have tightened to levels not seen since 2007. Compared with the last episode Read more […]

What a Portfolio Might Look Like After Adding a Pinch of Real Assets

In December 2015, S&P Dow Jones Indices launched the S&P Real Assets Index, the first index of its kind, which is designed to measure global property, infrastructure, commodities, and inflation-linked bonds, using liquid and investable component indices that track public equities, fixed income, and futures. The S&P Real Assets Index includes global infrastructure (35%), property Read more […]

Where Are the PIGS Now, Minus the G?

Over the past five years, the more worrisome government-issued debt in Europe has made significant progress in managing the normal mechanism of higher-perceived risk equaling higher yields. The Wall Street Journal focused on Portugal’s debt in their article, “Decade of Easy Cash Turns Bond Market Upside Down”. Quantitative easing (QE) by the European Central Bank Read more […]

The S&P 500 Bond Index and… Mexico!

When we talk about investments in the U. S., the first thing that comes to mind is the S&P 500®, since it is used to analyze and track large-cap stocks in the U.S. market. Following this iconic index, in July 2015 S&P DJI introduced the S&P 500 Bond Index, which is designed to be a Read more […]