WisdomTree Blog

The Impact of Fed Rate Hikes on Core Fixed Income

While fixed income strategists have called for rising rates in nearly every year since the financial crisis, 2018 has marked one of the worst starts for bond investors since 1996. With 10-year rates up, many investors are questioning what if any changes they should be making to their portfolios.

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Emerging Market Local Debt: A Seasonal Opportunity

Over the last 11 years, the three-month investment window from February 1 through April 30 has, on average, produced the strongest returns for EM assets, in particular EM local debt and EM equities, and generated the fewest and the smallest shortfalls.

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2017 Outlook: Investment Considerations for Trump Administration
Our thought leaders recently sat down to reflect on 2016 and discuss the forces that could impact global financial markets in 2017. Here is a part of their discussion that focuses on key investment considerations for Trump administration.
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Reconfiguring Core-Plus Fixed Income for the Trump Inflection
For much of this year, we have encouraged investors to look at their core fixed income exposures in a different light. Core bond strategies need not be driven by market capitalization or the discretion of an active portfolio manager. Disciplined, passively managed strategies can be constructed to enhance income potential while broadly maintaining the risk characteristics of the investment-grade universe.
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Why the Bond Market Cried Uncle
Over the two weeks ending November 18, the yield of the 10-Year Treasury soared 57.9 basis points. Over the last 30 years, only two such periods saw larger increases—April 10, 1987, and November 23, 2001—making this November the third largest rise in the 10-Year Treasury yield.
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Enhance Your Agg Position for the Current Market Environment

As we’ve highlighted over the last several weeks, investors should be taking a closer look at their bond portfolios and determining if allocations to the Barclays U.S. Aggregate Index (Agg) are consistent with their investment objectives. In our view, while the Agg provides a time-tested barometer for fixed income performance, as an investment strategy, the approach is suboptimal.

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