1. Newsroom
  2. Asset TV Fund Selector: Fixed Income
Menu
UBP in the press 26.09.2018

Asset TV Fund Selector: Fixed Income

Asset TV Fund Selector: Fixed Income

What does the end of quantitative easing mean for bond investors? What should be the right exposure to emerging bond markets and why are active managers better equipped than passive ones to handle the return of volatility? Mohammed Kazmi, Portfolio Manager & Macro-Strategist Global and Absolute Return Fixed Income at UBP, recently participated in an Asset TV broadcast outlining the risk and reward trade-offs in fixed-income markets over the next six to twelve months.


 

With the period of extremely accommodative monetary policies – implemented through quantitative easing – coming to an end, fixed-income markets have found themselves under stress in recent months. Portfolio construction is getting more and more important in the higher-volatility regime that is beginning to take hold of the financial markets, states Mohammed Kazmi, along with other industry experts during a recent Asset TV broadcast on fixed-income funds selection.

According to UBP’s Portfolio Manager, it is not because they need to fight inflation that central banks are progressively removing liquidity, but rather because they feel comfortable with growth prospects.

With the macro outlook remaining positive and certain valuations becoming attractive after recent sell-offs, the actual tightening of monetary policies does not have to be seen as being broadly bad for financial markets, and risk markets in particular. Although investors tend to focus on interest rates hikes and rising volatility, there are actually a lot of opportunities, asserts Kazmi.

In this changing environment, where dispersion and volatility are on the rise, picking winners demands a much more active security selection. Finding pockets of value also requires an increasing use of liquid instruments for investors to be able to navigate through the more volatile markets and allow them to get more defensive or more aggressive depending on their assessment of market conditions.

As far as emerging bonds are concerned, notes Mohammed Kazmi, they are now going through a “test phase”, as some of the flows driven by quantitative easing are still leaving these markets. In contrast to previous crisis, emerging markets seem so far to be immune to the risk of contagion thanks to improved fundamentals. Nevertheless a cautious and selective approach remains necessary in the short to medium term.

Global & absolute return fixed income

Kazmi-Mohammed-150x150px.jpg

Mohammed Kazmi
Portfolio Manager & Macro-Strategist

Expertise

Swiss & Global Equities

Why Swiss equities now? This market offers equity investors the stability and agility they need to navigate this volatile period. 

Read more
Expertise

European Equities

European equities offer unrivalled opportunities in terms of breadth of sector and market exposure.

Read more

Most read

UBP in the press 12.10.2020

The private banker’s metamorphosis

Le Temps (12.10.2020) - Few have been forced by their environment to go through such a deep professional change as private bankers. While relationship-building and advising remains their core role, their job today does not have much in common with what it was before the 2008 slump.

UBP in the press 21.08.2020

Does private education generate positive impact?

Environmental Finance (14.08) - There is a strong argument for saying that private education has no place in impact investing because education is a basic public good that should be freely accessible to all. 

UBP in the press 28.05.2020

Covid-19 crisis: CDS indices have passed their crash test

Le Temps (26.04.2020) - The Covid-19 crisis has caused major upheaval for equity and bond positions within portfolios.


Further reading

UBP in the press 23.11.2020

Frontier debt comes of age

Financial Investigator (20.11.2020) - Frontier debt has grown significantly over the past decade and now warrants serious consideration as a dedicated allocation in investors’ portfolios.

UBP in the press 20.11.2020

What will it take for responsible investing to change the world?

Good With Money (20.11.2020) – Victoria Leggett, Head of Impact Investing at UBP, and Eli Koen, Fund Manager, recently took part in a Good With Money podcast, a series in which experts discuss current ethical investment trends.