Fixed income investors should brace themselves for substantial market value declines of traditional core and core-plus investments as interest rates rise in response to anticipated tightening in monetary policy.
Instead of the core, core-plus, government and benchmark-oriented strategies of old, investors should seek out next generation debt investment strategies including global and emerging market debt, high yield bonds, bank loans and other alternative benchmark-agnostic strategies.
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury