A New Paradigm in Fixed Income Investing
Traditional real money investors like pension and endowment funds have always invested a percentage of their assets in long-only active fixed-income indexed to the U.S. Aggregate. However, with more than a three-decade-long bull market in interest rates behind us, investors need to not only be seeking out strategies that provide higher yields than cash, but also those that guard against an eventual rise in interest rates. An ‘absolute return’ strategy, with or without leverage, may meet both of these objectives. It is critical to construct a well-diversified, duration-constrained portfolio that takes advantage of alpha-generating opportunities to generate returns not only in a rising rate environment but also when rates are range bound. In this new paradigm of fixed-income investing, these strategies are known as follows: Unconstrained, Absolute Return, Real Return or Strategic Alpha. Regardless of name, a common feature of these strategies is they are not indexed to any fixed-income benchmark.
Join CFA Society of San Francisco as four well known bond investors discuss and debate new approaches in fixed-income investing.
Marc P. Seidner, CFA
Mr. Seidner is CIO Non-traditional Strategies, a managing director and head of portfolio management in the New York office. He is also a generalist portfolio manager and a member of the Investment Committee. He rejoined PIMCO in November 2014 after serving as head of fixed income at GMO LLC, and previously he was a PIMCO managing director, generalist portfolio manager and member of the Investment Committee until January 2014. Prior to joining PIMCO in 2009, he was a managing director and domestic fixed income portfolio manager at Harvard Management Company. Previously, he was director of active core strategies at Standish Mellon Asset Management and a senior portfolio manager at Fidelity Management and Research. He has 27 years of investment experience and holds an undergraduate degree in economics from Boston College.
Michael is the co-head of Global Portfolio Management within the Global Fixed Income team in Goldman Sachs Asset Management (GSAM). In this role, he is responsible for co-leading the global team of portfolio managers that oversee multi-sector portfolios. Previously, Michael was a senior portfolio manager and co-head of the US Fixed Income group. He joined the firm in GSAM in 2007 as a managing director and head of Structured Products. Michael was named partner in 2012.
Prior to joining the firm, Michael was a senior managing director in charge of Friedman, Billings & Ramsey’s (FBR) Fixed Income Sales & Trading Division. Prior to FBR, he was the vice president and head of the Securities Sales and Trading Group at Freddie Mac.
Michael earned a BA in Politics and Economics from Brandeis University, a General Course Degree from the London School of Economics and an MA in International Economics and Finance from the Lemberg School at Brandeis University.
Jeffrey Rosenberg, CFA,