Hermes’ six ways to adapt to a brave new bond world
By JeffreydydayGD JeffreydydayGD, 28 Sep 16
In this challenging and uncertain environment for fixed income investors, Fraser Lundie, co-head of credit at Hermes Investment Management, lays out six options for adapting bond portfolios to meet the challenges markets are presenting.
Such low prospective returns undermine the ability of long-duration instruments to withstand future market shocks. As a consequence, we operate a very low duration exposure in Hermes Multi Strategy Credit Fund and instead allocate to defensive credit trades to preserve capital.
 Bank of America Merrill Lynch. Data as at 23/09/2016 for corporate bonds excluding financials