Financial Education

International bond managers can seek excess return from a variety of sources:

1. Bond market selection - choosing the best country in which to invest
2. Currency selection - deciding whether to hedge or retain currency risk
3. Duration/yield curve management - getting the most favorable returns within the selected market
4. Sector selection - choosing among government, corporate, local currency or dollar-denominated bonds
5. Issuer credit analysis - being able to identify improvement or deterioration in advance of changes in rating
6. Benchmark mismatches - investing in markets that are not included in the benchmark index

For more information, see all articles on: Active Management, Asset Allocation, FInancial Planning, Fixed income investments, Investing in bonds, Investment Returns, Portfolio Management

See also:

Enhanced Indexing Strategies for Fixed Income Portfolios

Using Protective Puts to Improve Bond Portfolio Performance

Dealing With Rising Correlations in Falling Markets

Extensions to Classical Bond Immunization Theory

The Effect of Domestic Interest Rates on the Value of Foreign Bonds