Strategic Fixed Income Investing: An Insider's Perspective on Bond Markets, Analysis, and Portfolio Management

PART Two

The Fixed Income Investor

This next section of the book will help define and build a solid foundation for fixed income investing. The journey will start with an assessment of the different types of investors. I will address the different components and characteristics within the world of fixed income investing. In addition, I will cover the necessary tools to put together a well-constructed game plan on how to navigate through the ever-evolving and changing fixed income world. It is quite important to know what to look for and what should be avoided, and most importantly, how to recognize and have the ability to catch yourself if you are starting to stray from the investment's stated goal.

Who should invest in the fixed income markets? Is it you? Is it me? Once defined, what type of vehicle should be utilized? An argument can be made to hold fixed income exposure in almost every scenario. From pension fund mandates to strategies geared for income distribution, a fixed income allocation is warranted. Ultimately, the correct answer is that everyone–from a high net-worth individual to an institutional account–should utilize the fixed income arena.

Over the years, I have heard many different definitions of what an institutional investor is. A simple way to define this type of investor is by investable assets and investment goals.

This holds true whether you are managing a portfolio for a high net worth individual or an institutional investor. There are certain characteristics ...