Fixed Income

“To be able to complement that with credit exposures that were less liquid, that had higher credit risk, or a shorter duration through their floating rate characteristics, was a nice offset and balance to what was in the traditional fixed income portfolios, and…”

“Now, about 20 years ago, there was some accounting changes which gave companies a really strong incentive to start moving more assets to a liability hedge, and so that's why you probably see north of 50 to 60% in fixed income, but still 20 plus percent in alte…”

“If you have a tech startup, and like, tech is mostly the US economy now, you're kind of, if you own US stocks, you're kind of doubling down on your, what you're already doing, which is your income, right? So I actually could make an argument for why you might …”

“If you asked us 10 years ago, the funding source for most hedge funds was equity, and that's completely shifted. Even in our portfolios, the funding source is fixed income.”

“Pre-private markets infrastructure becoming the next market structure evolution, in my view, after equities fixed income derivatives, but very informative in terms of how I think about the technology evolution that's happening in private markets from pre to po…”

“If we avoid the losers, the winners take care of themselves. That's our official motto. And that's the right way to think about fixed income.”

“It's roughly 48% in aggregate equity exposure, including some private equity, but mostly public equity, and 52% investment grade fixed income. There's some other pieces in that, but largely investment grade fixed income. There's about seven and a half percent …”

“Most asset classes, there's upside optionality, fixed income, and private debt as well. It's downside optionality, and so there's diversification, and there are a lot of good managers, and so we focus a lot more on beta than we do on alpha, which is limited in…”

“In the last year and a half, Clients have systematically increased either their allocation of fixed income, or they've increased their hedge by adding more derivatives to the portfolio.”

“We're just now starting to really consider beginning to add some of that asset class back into portfolios and are pretty close to done with the work we're doing to identify the managers we'll use to put that in place for some of our clients where it's an appro…”

“But we're about 38% in equities, 26 in fixed income, 19% in tips, 30%, give or take, in privates. So that's 10 in private real estate and 20 in private equity and private debt. And that gets you to about a 112.”

“Fixed income, not going to add a lot of value. When Meredith came on board, you jumped into privates. Frankly, that's where we're going to add a lot of value.”

“Our portfolio right now from a fixed income and cash perspective is yielding close to six percent.”

“The fixed income went from hedging something like 25% of the liabilities to more than 50% of the liabilities.”

“Coming up through the fixed income side is interesting because it combines the macro view where it's all the macro forces that influence interest rates with the credit view where it's very micro forces that influence credit quality. It's where macro and micro …”

“Typically those would get hedged or fixed income like where the volatility of the return stream is low. The currency volatility can swamp that. And usually that's playing an asset liability function in the portfolio. So typically that kind of investment stream…”

“Fixed income is a little bit different, and I think I've said this many times, passive is one of the stupidest ideas ever in fixed income.”

“I actually think starting out in fixed income is probably the best place to start if you're going to have a successful career in investments. It really sort of grounds you, makes you sort of really understand the sort of Charlie Ellis winning by not losing Man…”

“Tokens are really interesting because they're very much a new asset class. They're the fifth asset class in the world. Pre-tokens, there were equities, fixed income, currencies, and commodities, and really every asset could be put into one of those four catego…”

“So we've even said for some investors, maybe you think about having some of the more conservative multi-strat hedge fund managers and think about it as a fixed income proxy.”

“So right now we have about two percent of cash, and then we have another five percent in the fixed income piece, which is incredible. It's daily liquidity, so call it seven percent.”

“They have a six or seven percent actuarial assumption that they've got to meet, and there's zero chance that their public equity or fixed income buckets are going to meet that need, so they're having to do more privates.”

“Your PF is typically a fixed income instrument for the most part. So that's already giving you a debt allocation for your longer term. You can then therefore whatever beyond you have as savings that can go into equity”

“My philosophy and fixed income Is diversify, do a lot of trades, get regime right, get the asset allocation right, and then do a lot of relative value trades. Don't make a huge bet on duration. Don't make a huge bet that's going to overwhelm the whole portfoli…”

“I think where a lot of the real alpha is going to be going forward. It's bespoke investments where you functionally create the investment, whether it's in the commercial real estate or resi or a European asset finance. The term loan to an aircraft producer. Th…”

“The 40 just doesn't work anymore, right? And the reason that you love the 40 for the last few decades, our entire trading career, your and mine, has been that interest rates have been declining, and they finally got to a point where they just really couldn't d…”

“Most of our assets on fixed income are actively managed.”

“Fixed income is a very interesting one because it's easier to beat the benchmark. The fixed income compared to the stock market, there's much more consistent Alpha generation.”

“Being a hospital, one of the things that we kind of go through in the enterprise review is we issue debt for capital projects, so, you know, that's actually really important because these assets back up in a lot of instances the debt issuance, and so we typica…”

“20% target to fixed income is all of that pure deflation hedging. It's not, I can tell you, because it would be nearly impossible to build a portfolio like that without destroying capital long term.”

“12 points in the portfolio, something like that. It's not huge, but it's far more than any of my peers, for sure.”

“It's not to get the marginal negative three percent. It's there because if the bottom falls out of the equity market, There will be a flight to safety, which will be fixed income. That will be the liquid asset that will be appreciated at the time, and you can …”

“So we only have four asset classes. Three of them are 30%, and one's 10. So fixed income is 10, even though we're actually sitting lower than that. And then we have public equities, we have private investments, and we have, we call it multi-strategy.”

“You're going to expect to have more Dour and conservative people and on the fixed income side of things that the world's always ending and everyone's going to default versus the equity guys that think everything's going to go on forever.”

“We had, I guess I'll just get specific, we had about 30% in fixed income when I arrived, and we dropped that immediately to 15%. When I say immediately, we had a responsible staged migration that took about one year”

“We would argue it should be a systematic part of the portfolio. And I think really that is because it arguably is, is and could be taking the place Of what that fixed income component always had.”