Alison Martier | Context: The AB Blog

June 30, 2016

When Volatility Spikes: Hedge Your Global Bonds

by Scott DiMaggio, Alison Martier

Savvy global core bond investors—those who invest in bonds as an offset to risk assets—came into Brexit currency-hedged. It paid off. During the flight to safety, currencies close to the center of the storm took a beating.

Currency, Fixed Income

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June 20, 2016

Stay Positive: How to Go Global and Avoid Negative Yields

by Scott DiMaggio, Alison Martier

When it comes to globalizing their bond portfolios, some investors find themselves channeling the early Christian philosopher St. Augustine: they want to do it—just not yet.

Fixed Income

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June 06, 2016

Are You Prepared for a Summer Hike?

by Scott DiMaggio, Alison Martier

Janet Yellen and other Fed officials spent the last few weeks cautioning investors that a rate increase could be imminent owing to favorable economic data. Then came a weak jobs report. Will they or won’t they? Investors are left wondering how to weather the volatility that lies ahead.

Fixed Income

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May 18, 2016

Act Now: Volatility Ahead in US Treasury Market

by Scott DiMaggio, Alison Martier

We laud US regulators’ announcement on Monday that they will increase oversight of the Treasury market. Unfortunately, merely assuring investors additional price transparency in trading won’t be sufficient to stem the kind of volatility that has apparently compelled officials to take action.

Fixed Income

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May 17, 2016

Four Factors that Make Global Bonds a Core Solution

by Scott DiMaggio, Alison Martier

More investors than ever are looking to jump into the global bond boat—as well they should. But will they get the safety-oriented core bond mandate they expect, or a high-volatility, white-water experience?

Fixed Income

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January 25, 2016

New Year, More Volatility—What Can Investors Do?

by Martin Atkin, Dianne Lob, Alison Martier

The calendar has changed to 2016, but the volatility story remains. The key concern: weaker global growth and its possible ripple effects, including low oil prices for an extended period. How should investors approach this challenge?

Equities, Fixed Income, Multi-Asset

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November 09, 2015

Do Global Bonds Belong in US DC Plans?

by Alison Martier, Christopher Nikolich

Looking to control risk? US defined contribution (DC) plans should consider incorporating currency-hedged global bonds into their core menus and target-date funds (TDFs).

Fixed Income, Multi-Asset, Target-Date Solutions

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October 19, 2015

Got Equilibrium? Improving the Core Bond Solution

by Scott DiMaggio, Alison Martier

How much global is the right amount to add to core bond portfolios? Is there an optimal amount that improves potential risk-adjusted return?

Fixed Income

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October 12, 2015

Hedging or Cross Hedging? It Makes a Difference

by Scott DiMaggio, Alison Martier

We recently wrote that currency hedging is critical for core bond investors. But not all hedging is created equal. Cross hedging is not the same strategy. Even though it can look deceptively similar, it will not deliver the same results to the investor’s “volatility” bottom line.

Fixed Income

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October 05, 2015

Global Bonds: To Hedge or Not to Hedge?

by Scott DiMaggio, Alison Martier

With US rates poised to rise, there’s never been a better time to reposition into global bonds as your core mandate. But when you do, it’s crucial to fully hedge against currencies—an asset class nearly twice as risky as fixed income.

Fixed Income

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September 28, 2015

Strengthen Your Core

by Scott DiMaggio, Alison Martier

Core bond investors tend to have a strong “home bias.” But our research shows that global bonds have offered comparable historical returns and considerably lower volatility than local markets over the long term. In addition, a global approach offers protection when local rates climb.

Fixed Income

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September 21, 2015

Rising Rates Got You Down?

by Scott DiMaggio, Alison Martier

The Fed may have left well enough alone for now, but in our view it won’t leave the pot to simmer much longer. US interest rates are going to rise, almost surely before the year is out. Thankfully, diverging interest-rate cycles around the globe offer hope—and opportunity—for US investors.

Fixed Income

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June 11, 2015

Worried About Rising Rates? Go Global

by Alison Martier

US-only bond investors are affected by one business cycle, one yield curve, one monetary policy. As long as interest rates were falling, that was good. But it doesn’t sound so good now.

Fixed Income

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by Scott DiMaggio, Alison Martier

Currency, Fixed Income

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by Scott DiMaggio, Alison Martier

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by Scott DiMaggio, Alison Martier

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by Scott DiMaggio, Alison Martier

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by Scott DiMaggio, Alison Martier

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by Martin Atkin, Dianne Lob, Alison Martier

Equities, Fixed Income, Multi-Asset

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by Alison Martier, Christopher Nikolich

Fixed Income, Multi-Asset, Target-Date Solutions

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by Scott DiMaggio, Alison Martier

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by Scott DiMaggio, Alison Martier

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by Scott DiMaggio, Alison Martier

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by Scott DiMaggio, Alison Martier

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by Scott DiMaggio, Alison Martier

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by Alison Martier

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