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You are leaving SSGA.com
The website you are accessing is created and maintained by another entity. We make no representation or warranty with respect to the information contained on the site or that it is appropriate in all jurisdictions or countries, or for use by all investors or counterparties. The products and services discussed at this site may not be appropriate for sale or use by all investors or counterparties. By providing this link, we are not providing you with investment advice or offering securities for sale to you. All persons and entities that access this site do so on their own initiative and are responsible for compliance with applicable local laws and regulations.
You are leaving SSGA.com
The website you are accessing is created and maintained by another entity. We make no representation or warranty with respect to the information contained on the site or that it is appropriate in all jurisdictions or countries, or for use by all investors or counterparties. The products and services discussed at this site may not be appropriate for sale or use by all investors or counterparties. By providing this link, we are not providing you with investment advice or offering securities for sale to you. All persons and entities that access this site do so on their own initiative and are responsible for compliance with applicable local laws and regulations.
Q3 2020 Bond Compass
Balancing Risks While Searching for Yield
Access our comprehensive quarterly report on fixed income flows and holdings.
Our analysis below includes investor trends across $10 trillion of assets1, as well as SPDR® fixed income ETF implementation ideas for the upcoming quarter.
Investor Sentiment
Track current trends across tens of thousands of fixed income portfolios.
PriceStats® Analysis
Get analysis of quarterly inflation measures based on prices from millions of items sold by online retailers around the globe.
PM Interview
Bradley Sullivan, CFA, senior portfolio manager at State Street Global Advisors, provides his insights on high yield markets, fallen angels and how he manages high yield beta products, given the increased prospects of pandemic-driven defaults and bankruptcies.
Investment Outlook
Three Ideas to Generate Income While Balancing Risk
In the coming quarter, consider implementing these investment strategies with SPDR ETFs:
- Ride Hybrids for Potential Total Return
- Adopt a Mortgage Bias to Play Defense
- Catch Fallen Angels on the Hunt for Yield
More Fixed Income Insights & Research
Fixed Income Chart Pack
Take a closer look at proprietary market indicators and bond ETF fund flows.
Fixed Income Dashboard
Review ETF flows, fixed income index returns and product performance details.
Invest in Fixed Income ETFs
Find out how fixed income ETFs can benefit portfolios, increase liquidity and lower costs.
State Street Global Advisors
A leader in fixed income investing.
$474B
in fixed income assets 2
24 Yrs
of bond index investing
100+
fixed income index strategies
1 State Street Form 10-K, as of December 31, 2019. 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 March 31, 2020.
Beta
Measures the volatility of a security or portfolio in relation to the market, with the broad market usually measured by the S&P 500 Index. A beta of 1 indicates the security will move with the market. A beta of 1.3 means the security is expected to be 30% more volatile than the market, while a beta of 0.8 means the security is expected to be 20% less volatile than the market.
Fallen Angel
A bond that was initially rated investment grade (‘BBB’ or higher) and has been reduced to junk grade or high yield (‘BB’ or lower).
High Yield
A company or bond that is rated ‘BB’ or lower is known as junk grade or high yield, in which case the probability that the company will repay its issued debt is deemed to be speculative.
Inflation
An overall increase in the price 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.
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.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.