Bond ladders

Never heard of bond ladders? Well neither had I until a few months back. I was running some tests on a sample bond portfolio and discovered a seeming paradox: A portfolio that is long bonds may actually benefit from a sell off! The explanation is that you benefit when you reinvest the coupons that your … Continue reading Bond ladders

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The current crisis in historical perspective

This short post is primarily to give links to three excellent articles on macro economics by Ray Dalio, founder of Bridgewater. The first, a 'template for understanding' how economies work, is better than anything I have ever seen in introductory books on economics. The other two articles take a closer look at the dynamics of debt and … Continue reading The current crisis in historical perspective

Fixed-income investment strategies in the age of the New Normal

I came across an interesting presentation given by one of the senior members of PIMCO UK, a chap called Mike Amey. Click here to see it (a PDF). What I especially like about this presentation is that it covers a lot of the main topics that I hear investors discussing at the moment, ranging from … Continue reading Fixed-income investment strategies in the age of the New Normal