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The current market for fixed income is a positive environment for selective carry-based investment strategies, says Kevin Zhao, Lead Portfolio Manager of UBS Global Dynamic Bond strategy and Head of Global Sovereign and Currency, Fixed Income.
Active management in the fixed income should do well in market conditions with reasonably high volatility or relatively low correlation, explains Kevin Zhao: “Historical evidence has shown that active managers in fixed income have generally outperformed passive index trackers with no particular changing patterns over time. There are a couple of reasons behind better active performance in fixed income including far more securities in aggregate bond indices than in major stock indices, higher transaction costs for...
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