Insights Active Management: Fixed Income Through the Crisis

Jun 10, 2020
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Highlights

  • Bonds continue to serve an important role in portfolios, helping to protect capital in difficult times.
  • Given steps that state and local issuers took to strengthen their financial positions leading up to the crisis, the overall municipal bond asset class is well positioned to weather through stress.
  • The investment grade bond market is active and functioning well, bolstered by the quick and unprecedented actions taken by the Federal Reserve.
  • We do not expect an acceleration in inflation in the near term due to the demand shock created by COVID-19; we believe the Fed is unlikely to adopt a negative interest rate policy.
  • A higher quality/lower risk approach in taxable portfolios has been additive during this latest market stress; in municipal bonds, we continue to focus intensely on individual credits.

 

About the Authors

Peter J. Langas
Chief Portfolio Strategist
In this role, Peter is responsible for developing policies on asset allocation, customized portfolio strategies, and implementation.

Kevin Akinskas
Head of Municipal Bonds
In this role, Kevin leverages the firm’s best thinking and works collaboratively with a team of highly experienced analysts and researchers to manage our municipal bond strategy and offering.

Beatriz (Betty) M. Cuervo
Head of Taxable Fixed Income
In this role, Beatriz leverages the firm’s best thinking and works collaboratively with a team of highly experienced analysts to manage our taxable fixed income portfolios

David W. Rossmiller
Head of Fixed Income
In this role, David is responsible for overseeing fixed-income investment strategy, research, implementation, and communication.