Perspectives Blog

Should your income be fixed?

David King, CFA, Senior Portfolio Manager | December 16, 2013

Investors need to rethink the role of fixed income in building portfolios How to provide an adequate rate of return with an acceptable level of risk Benefits of a non-fixed, income-oriented strategy in today’s environment Peanut butter and jelly. Bacon and eggs. Scotch and soda. In the investment industry, the words “fixed” and “income” seem as inseparable as our favorite food and beverage combinations. Something which has served millions of p…

Rates rise, convertibles do what?

David King, CFA, Senior Portfolio Manager | August 9, 2013

There is a very common concern that convertible securities will not perform well in a rising interest rate environment. Analysis of past rising rate periods shows that convertible returns have been neutral or positive as long as stock returns were positive. Accordingly, we do not see concern about rising interest rates alone as a good reason to avoid convertible securities. There is a very common concern that convertible securities will not pe…