Low yields offer limited value for long term investors. Negative real returns with risk of rate selloffs. Spread markets have limited room to rally

Are Fixed Income allocations too high, given poor projected returns and lower safe haven value for rates? Spreads are correlated to equities, with predictably low returns. And active fixed income funds generate mostly beta.

Some Interesting Alternatives include automated liquid low cost smart beta solutions, front end principal protected solutions, and multi-asset absolute return alternatives.

Record low yields, but likely to remain low.

Investment grade spreads are unattractive

The outlook for markets is volatile after a spectacular recovery since March

We explain why fixed income investors face unique challenges in the post-Covid era

It's worth thinking about the challenges of using AI/Ml in producing alpha and trading signals, especially medium-to-long-term and low-frequency, in the post-Covid environment. In this presentation to AI4 today, I examine how historical patterns of medium/long term investment returns and risk have broken and why they may be a challenge for AI/ML based methods. I illustrate with three examples: the shift in fixed income returns, the turmoil in liquidity and market structure in March 2020, and the exacerbated equity sector leadership/ tech “bubble"

Throughout the world, the coronavirus has taken fixed income markets on a roller coaster ride. Many consider bonds to be relatively safe, yet yields are at historic lows. This has left asset allocators and those seeking safe income with difficult choices. In this presentation, Dr. Arvind Rajan reviews the current and future challenges faced by the global fixed income market.