Justin Waggoner, Author at Boyd Watterson

More Income in Fixed Income

June 27, 2022Justin WaggonerEconomic and Market Commentary

The bond market in 2022 has been turbulent and the negative total returns have been some of the worst experienced by fixed income investors. As a result, a substantial amount of pessimism has been created for the asset class so far this year. However, a reason for optimism has also been created for fixed income...

In order to navigate this lower yield and longer duration landscape, especially in a rising interest rate environment when principal preservation is paramount, having as many tools in the toolbox as possible is beneficial. One of the tools to potentially improve the risk/reward profile of a portfolio is having the ability to utilize an expanded opportunity set of securities that reside outside of traditional fixed income benchmarks.

August 30, 2021Justin WaggonerEconomic and Market Commentary

The current risk/reward profile in the bond market is skewed more toward risk than reward. Since yields are historically low at a time when durations are historically high, benchmark tethered fixed income investors and passive fixed income indexers are being compensated less for taking on more interest rate risk. This diverging trend of yield versus...

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More Income in Fixed Income