To get the most out of bond investments, it is necessary to review your portfolio periodically. While your FIIG Relationship Manager can help you with this at any time, each year a number of FIIG client portfolios receive a centrally generated, formal Portfolio Scorecard. With those annual scorecards having recently been sent, it’s timely to talk about how to get the most out of a portfolio review.
Events during the life of a bond can give the investor a chance to re-evaluate the position and make sure that the original thesis for investment still holds.
Trade opportunities
We've updated our Sample Portfolios for the month.
Trade opportunities
We've updated our Sample Portfolios for the month.
In the final article of the series, we round out the rest of the risks we typically consider, being which includes liquidity and foreign exchange (FX), as well as look at how to appropriately size the various positions of each bond within the portfolio.
In this second article of the series we will delve into the two main risks faced by bond investors – the risk of not being paid back – or credit risk – and the risk of the market price of your bond investment moving due to a change in the interest rate or yield of the bond – called interest rate risk.
Trade opportunities
We've updated our Sample Portfolios for the month.
We recently covered the basics of bonds in a multi part series. We now move on to a slightly more advanced look in more detail at the way we think about building portfolios here at FIIG, in terms of specific client targets and the way we manage and mitigate the various risks that apply to fixed income portfolios.
Trade opportunities
We've updated our Sample Portfolios for the month.
In this final edition for the Bond basics series we will explain the capital structure – one of the key pieces of information about the risk of your bond – and see how it works in practice.