Fixed income
“ With investors concerned about recessionary risks , sovereign bonds are able to provide some protection against downgrades to economic growth ”
Edward Park Chief investment officer at Brooks Macdonald
yield end of the credit spectrum . “ For sovereign bond markets and high-quality investment grade bond markets , a passive solution is a cost-effective and pragmatic approach to achieve broad market exposure ,” he says . “ Within higher-risk areas of the market such as high-yield bonds , a purely passive approach can mean that investors have the greatest exposure to the most indebted of companies , which may bring additional risks into the portfolio .”
Debt collecting As opposed to equities , where an index fund typically buys the largest companies by market share , in corporate bonds , the simplified view is that an index fund is exposed to the most indebted companies , which
Issue 87 - September 2022 / 27 /