Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Bandon Warns Against Complacency in Fixed-Income Investing Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, August 30, 2012

Bandon Warns Against Complacency in Fixed-Income Investing

Reported by Irene Park

Bandon Capital Management [profile] has published research about fixed income funds. The main takeaway? Be wary of investor complacency.

The paper examines the risks of the current low interest rate environment and the challenges of both a prolonged low or rising interest rate future. During a phone interview with the MFWire, author Bill Woodruff — who is also founder, managing principal and CIO of Bandon — pointed to investors' tendency to invest across asset classes without fully considering the risks associated with such investing. Flows into fixed-income mutual funds between 2009 and 2011 totals $740 billion, or more than 15 times the inflows from between 2000 and 2008 ($47 billion), he writes in his white paper. But investors seem to be ignoring the fact that interest rates in the U.S. have been declining for the last 30 years, with little room left for further decline.

"We have used the analogy of driving your car, and driving while looking in the rear-view mirror would be something that we never subscribe to," commented Bandon managing partner, investor relations Mike Miller during the same phone conversation. "Our point is as you think about fixed income road ahead, there are many dangers that the warning signs are posted and that many people are overlooking those danger signs that are coming."

Woodruff points to Bandon's long-short strategy as one solution to complacency. Using short, he says, can help investors hedge potentially unwanted risk factors.

"The use of short — whether in seeking profits or to isolate via hedging specific opportunities — is not just simply an additive part of the portfolio, but really should be looked at as opportunities to create a return profile that's much more attractive than simply buying, holding and doing income risks," he said.

Fixed Income Investing — the Dangers of Complacency is the first in a series of three white papers addressing the fixed-income space. The following two will address more in depth long-short debt as a possible solution and its role in portfolio construction.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2025: Q4Q3Q2Q1
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


  1. MFDF In Focus - Board Oversight of DEI in Current Landscape, September 11
  2. 2025 MMI Institutional Forum, September 11
  3. WE San Francisco - Annual Networking Event, September 11
  4. IDC webinar - Distribution for Fund Directors: Evolution and Trends, September 15
  5. MFDF webinar - MFDF 15(c) White Paper Webinar Series: Part 4 – Enforcement Action Takeaways, September 16
  6. IMEA Content Management Roundtable, September 16
  7. IMEA 2025 Star Awards Celebration, September 16
  8. IMEA Marketing Summit, Sep 16-17
  9. MFDF webinar - Latest in Closed-End Funds Litigations, September 23
  10. WE PNW - Mentorship Program Virtual Session: Building Trust to Win New Business and Influence Others, September 23
  11. IMEA Portfolio Construction Roundtable, September 24
  12. Nicsa webinar - Utilizing AI to Enhance Distribution & Advisor Engagement, September 24
  13. MFDF webinar - Fixed Income Insights: Navigating Market Trends & Opportunities, September 24
  14. IMEA Models Roundtable, September 25
  15. Expect Miracles Atlantic Coast Classic 2025, September 29
  16. MFDF webinar - Risk Management Essentials for RICs and Boards, September 29
  17. MFDF webinar - Diligent - Tools for Fund Board Book, October 1
  18. 10th annual Fuse Forum, October 8
  19. MFDF webinar - Essential Strategies in Board Oversight of Operational Risk Management, October 14
  20. 2025 MMI Annual Conference, Oct 15-17
  21. MFDF webinar - Series Trust Funds - Effective Board Relationships with Advisers, October 15
  22. Samfund Soiree Manhattan 2025, October 23
  23. Tiburon CEO Summit XLIX, Oct 27-29
  24. Schwab Impact 2025, Nov 2-4
  25. UCITS & AIFMD for U.S. Managers 2025, Nov 4-5
  26. MFDF In Focus webinar - Audit Committee Chair, November 5




©All rights reserved to InvestmentWires, Inc. 1997-2025
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use