Bond Market and Fixed Income Job Market
Just wanted to gather you guys' opinion as it pertains to the current state of the bond market trend (higher yields/bond market selloff) and future job market within the fixed income investment management industry in the next 2 to 15 years from now.
Background: prospective MBA student aspiring to jump start my career in fixed income research/portfolio management in the next 3-4 years.
Does a selloff in bonds lead to the downsizing of FI groups? Could the bond market and job market in 1980s be used as a benchmark?
Depends how overstaffed your company is. If you’re the only one covering your sector, you’re probably not getting cut. Also, a lot of fixed income money is institutional like pensions and insurance companies. They are liability driven, so mark to market doesn’t really matter.
Where are the bond markets heading? (Originally Posted: 01/30/2013)
With recruiting picking up into full steam for a lot of juniors, I would really appreciate if some of the more experienced monkeys on WSO could lend an opinion on where they believe the bond markets are headed in 2013. Having an opinion on equity markets is one thing, but I personally don't have much more of an opinion on the bond markets other than knowing that Banker Ben plans to keep rates down through 2014.
Would appreciate to hear the insight of some of the senior folks. If there are specific sources apart from news publications with commentary on the bond markets it would be great if those were referenced.
Thanks.
Bond markets is a broad lady my friend. You should access some IB reports on Fixed Income products... check the iTraxx index, etc.
Basically and here's it in a nutshell:
Central banks offer inflation. The market accepts. Every major CB is now in inflation mode. The market realises fundamentals (what is going on in front of them) is not matching the asset prices. Market has not discounted the bond market like it has the FX market.
This is pretty much true of every region except Africa.
But if you want to learn more read some financial history... Lombard Street or Niall Ferguson's books.
Just take a look at pricing in the primary market to get an idea. The European High Yield corporate market looks crazy right now. Last week we had an Italian issuer place structurally subordinated debt rated CCC with an 8% coupon. Artificially low interest rates are forcing investors to seek riskier debt in order to chase yield. In my opinion we are in a corporate bond market bubble. I think BofA published a piece on this last week about what will happen to bond holders once CB's raise rates.
Will look into the BofA piece. Thanks for your guys replies, I really appreciate it.
Woeful Bond Market (Originally Posted: 05/30/2014)
Fixed Income guys/gals....where are you going to find yield? Tsy rates are pitiful, IG credit spreads are near pre-crisis tights, bank loan debt is over valued, junk is overvalued, and even European Sovereigns look rich. With the looming rise in rates (which was clearly a wrong-way trade the last 6 months), what are you doing with your cash?
Ukraine corporates mutha fuckaaaaaa
Charles Schwab High Yield Checking
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Utilities at highs... Reits at highs.. mLPs pulled back.. Direct lending private equity deals and strategic income funds with negative duration
Bond Market Liquidity...or lack thereof (Originally Posted: 09/23/2015)
Monkeys, curious to get your thoughts here. I outsource most of my fixed income management so I never actually trade the stuff, so I'd like to hear from some more experienced members.
what prompted this is a WSJ article (http://www.wsj.com/articles/the-new-bond-market-some-funds-are-not-as-l…) basically saying that there are funds out there with less liquidity than they appear. I get that, and I also get that it's not as simple as some formula that WSJ uses. My question is: does it matter? do you see negative consequences here? I guess I'm looking for the answer to "yeah, so what?" here.
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