Portfolio Risk Mitigation without Bonds

by Dr. Michael Stamos, CFA

With the Fed fighting inflation and US Treasury bonds down more than 10% since the market top, how to handle the trillion-dollar bond problem is becoming more relevant for investors.

Dr. Michael Stamos, Head of Global R&D Multi Asset, flags this challenge in a study that was published in the March edition of The Journal of Portfolio Management.

He argues that government bond securities no longer seem to be the only obvious option for a crisis risk offset. Aside from this traditionally used “sheet anchor”, which reasonable risk management alternatives could help investors reduce their downside?

The article provides a thoughtful comparison and critical assessment of the opportunity cost and risk-reduction potential of several strategies that could help mitigate the portfolio risks of investors searching for alternative avenues to sovereign bonds.

Portfolio Risk Mitigation without Bonds cover

Related articles

After decades of slow price growth across developed markets, inflation has now reached its highest levels in more than 40 years. Investors worry about how to preserve their wealth and generate real returns in this inflationary environment. One proven option is the exploitation of momentum investing across asset classes.

Read more

Allianz Global Investors

You are leaving this website and being re-directed to the below website. This does not imply any approval or endorsement of the information by Allianz Global Investors Asia Pacific Limited contained in the redirected website nor does Allianz Global Investors Asia Pacific Limited accept any responsibility or liability in connection with this hyperlink and the information contained herein. Please keep in mind that the redirected website may contain funds and strategies not authorized for offering to the public in your jurisdiction. Besides, please also take note on the redirected website’s terms and conditions, privacy and security policies, or other legal information. By clicking “Continue”, you confirm you acknowledge the details mentioned above and would like to continue accessing the redirected website. Please click “Stay here” if you have any concerns.