Our research team includes those specialising in highly complex fixed income investments that can be a useful way to diversify your portfolio. Their insight into the different types of bonds and their performance provides investment managers with a real depth of knowledge when helping to build the right portfolio for your needs.
Fixed interest bonds are a key component of many portfolios – an area of investment in which we also specialise. That means we understand the different types of bonds, enabling us to build truly diverse portfolios.
Our specialised Fixed Interest team provides information on direct investment into government, supra-national and corporate bonds. It also advises on the different types of bonds – such as index-linked, conventional, high grade or high yield – and their use within fixed interest portfolios. We also have a fixed interest specialist within the Fund Research team whose job it is to analyse bond funds.
When considering government bonds, we look at yield to maturity (YTM) – the rate of return anticipated for a bond if held to the end of its lifetime – taking into account the present and future value of the bond. We also look at news flow (the change in interest rates and inflation), and price momentum.
In corporate bonds there is a further dimension, in that value is measured by comparing a bond’s YTM with government bonds of similar maturity, and with other corporate bonds of the same financial rating. News flow in this context measures movements in the fortunes of the underlying companies – for example, announcements by the ratings agencies of changes in a company’s ratings or outlook are important for news flow.