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Banque Cramer believes in the wisdom of “hive-mind”, collaborating with a strong network of top-tier financial market experts to feed its in-house investment process.
We believe that this open-mindedness better serves our clients’ interests.
In this same spirit, Cramer Library brings together the best in class educational pieces to hand-hold our clients in the journey of investments.
In my latest Market Insights , April 2022, I titled one slide as “The Fed unleashed the Bond Market” after nearly two decades of ultra-loose monetary policy. The cost of money went to quasi-zero which in turn killed the price discovery mechanism of the market.
Bond market could no longer serve as a ballast in a multi asset portfolio but rather it turns out to be correlated to equity market – “Losing his diversification benefits”.
Forthcoming rate hikes will revive the bond market . It will make it healthier and it will soon offer good entry points .
This paper from PIMCO gives a brief and clear notion of this market and it will help our client to better understand this asset class. My mentor at Merrill Lynch told me once “If you do not understand bond market then you do not understand the Investment” and now with time I can confirm this!
Good read.
Chief Investment Officer (CIO)
Head External Asset Management (EAM)
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