Our most comprehensive quarterly report on fixed income flows and holdings includes analysis of investor trends across $10 trillion of assets,1 plus SPDR® fixed income ETF implementation ideas for the upcoming quarter.
Three Ideas to Position for a Higher Rate Reflationary Regime
Consider replacing traditional bonds with less rate-sensitive and more growth-sensitive bonds — both in and out of the core — with these SPDR ETFs.
ESG-Enhanced Corporate Bond Indices: A Strategic Allocation
Corporate bonds selected on the basis of both ESG integration and exclusion at the issuer level can replace vanilla corporate bonds — this approach has historically reduced portfolio risk. Our analysis suggests that ESG-enhanced corporate bonds consistently tilted towards higher credit quality investment grade bonds.
1 State Street Form 10-K, as of March 31, 2021. The fixed income flows and holdings indicators produced by State Street Global Markets — the investment, research, and trading division of State Street Corporation — are based on aggregated and anonymized custody data provided to it by State Street, in its role as custodian. State Street Global Advisors does not have access to the underlying custody data used to produce the indicators. 2 State Street Global Advisors, as of December 31, 2020.
Inflation An overall increase in the prices of an economy’s goods and services during a given period, translating to a loss in purchasing power per unit of currency. Inflation generally occurs when growth of the money supply outpaces growth of the economy. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.
Yield The income produced by an investment, typically calculated as the interest received annually divided by the price of the investment. Yield comes from interest-bearing securities, such as bonds and dividend-paying stocks.
Investing involves risk, including the risk of loss of principal.
This communication is not intended to be an investment recommendation or investment advice and should not be relied upon as such.
Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates rise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
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Information related to Mexico
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