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How to Use Swaps to Hedge Interest Rate and Inflation Risk in Muni Bond Portfolios
For investors looking to diversify their portfolios with potentially lower risk, municipal (muni) bonds are becoming an increasingly attractive investment option. In this blog, we explain how muni bond investors can use swaps to hedge their exposure to interest rate fluctuations and inflation expectations, which have been the main drivers of muni bond market performance in 2024.
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Optimizing Technology for Liability-Driven Investing
Optimizing Technology for Liability-Driven Investing
Plummeting interest rates spurred by the COVID crisis are making liability-driven investing (LDI) more challenging than ever. Though firms are seeing reduced returns, they must still try to find ways of ensuring they have sufficient assets to cover their liabilities. To ease some of the complexity, it’s vital to have LDI technology in place with flexibility to properly match investment and risk
April 8, 2020
Blog
Managing Volatility Risk During the COVID-19 Crisis
Managing Volatility Risk During the COVID-19 Crisis
In just a few short weeks, the coronavirus has wreaked havoc on our daily lives and the global economy. Market volatility has increased dramatically, mostly due to significant declines, but also due to some recent positive swings. Drastic measures are now being taken to combat the spread of this novel virus. With investors reacting to the latest news of government stimulus, community infection
March 30, 2020
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International Women’s Day: If You Want it, You can Achieve it
International Women’s Day: If You Want it, You can Achieve it
Yesterday we celebrated International Women’s Day, a day where we reflect on women’s achievements and advancements today and throughout history. To mark the occasion, I had the honor of speaking on a panel of women at my Alma Mater, Simon Fraser University (SFU). The panel discussion dealt with ways women can thrive in male-dominated industries. I was humbled to be among some amazing women from
March 9, 2020
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Foundations of MBS Investing
Foundations of MBS Investing
During the 2008 credit crisis, MBS developed a bad rap, and understandably so. But now more than a decade on from the crisis, the landscape is changed such that the diversification benefits and good yield opportunity offered by MBS are recapturing the attention of investors. Of course, contributing to the improved safety record of MBS are now long-standing regulations like Dodd-Frank Wall Street
February 13, 2020
Blog
FINCAD Workshops Cover Curves, Valuation and the End of Libor
FINCAD Workshops Cover Curves, Valuation and the End of Libor
Libor discontinuation is an issue that continues to be top of mind for investors. Quickly approaching, the 2021 Libor phaseout will require a transition to alternative benchmarks, such as SONIA, €STER and SOFR. However, despite this being a huge deal, much of the industry remains unprepared to meet the change. To help our peers get a better handle on the transition, FINCAD recently held an
January 28, 2020
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