Navigating Lowest Yielding Bond Market

A dizzyingly expensive bond market places investors in a vexing dilemma: secure a higher yield by increasing credit risk or watch their capital eroding in low/negative yielding ‘safe-haven’ securities. We argue that a third and more efficient way exists to navigate the lowest yielding bond market in history.

A good investment is a function of two variables: price and quality. In the corporate bond world, quality reflects the likelihood of default and is impacted by the corporate’s level of indebtedness and the robustness of its business model. Unlike equities, where valuations can be subjective1, expected returns for bonds are straightforward to assess as they closely follow the yield. 

You can now read the full whitepaper at the link below