Archive | January 2015

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A Couple Lessons Learned from Recent Experience

Not only did the investing herd have the outlook for rates wrong, but it was uniformly inquiring about the wrong thing. Asset prices are often set to allow for the risks people are aware of. It s the ones they haven’t thought of that can knock the market for a loop. Forecasters usually stick too […]


How does the current risk profile of the U.S. Aggregate Index affect the choice between indexing and active management?

Since the financial crisis, government policy and direct issuance of Treasury securities have resulted in increased duration and lower yields in the Barclays U.S. Aggregate Index. These changes pose a direct challenge to investors in bond index funds, which are fully exposed to the concentrated risks that are now embedded in the index. Modest return […]