We take a closer look at how asset-backed securities can be used as a defensive asset for those seeking stable income in today’s investment environment. Michelle Russell-Dowe Head of Securitized, US Fixed Income
Simon Doyle and Mik Kase, discuss what the key issues facing fixed income investors are likely to be, where returns will come from, and how we are positioning our portfolios to navigate these conditions.
Stuart Dear, Fund Manager, Fixed Income, explains that we are well positioned to continue to provide defensive absolute outcomes, albeit that the cyclical and policy making uncertainty may impair short term relative returns.
Simon Doyle, Head of Fixed Income & Multi-Asset, attempts to explain how we are managing fixed income in the current environment and to put some context around our recent performance.
While it hasn’t received the same media attention as the recent decline in equities in 2016, significant falls in hybrid prices have also been apparent. As a result the hybrid market has become significantly cheaper, prompting Stuart Gray, Fund Manager, Fixed Income & Head of Credit Research, to question – is it time to buy hybrids?