Bond Market Secrets: Offsetting Asymmetric Downside Risk

Published on
January 15th, 2020
Duration
33 minutes

Up Next

Related Videos

Investing in Iraq: Perception vs. Reality
The Expert View ·

Investing in Iraq: Perception vs. Reality

The Winter of Discontent
The Expert View ·

The Winter of Discontent

Julian Brigden — Markets, Monetary Policy, and Society: A Major Inflection Point
The Expert View ·

Julian Brigden — Markets, Monetary Policy, and Society: A Major Inflection Point

Has Everything Changed? with Raoul Pal
The Expert View ·

Has Everything Changed? with Raoul Pal

Juliette Declercq’s Biggest Macro Trends
The Expert View ·

Juliette Declercq’s Biggest Macro Trends

The Dollar Endgame
The Expert View ·

The Dollar Endgame

Volatility Madness and the Fed Put
The Expert View ·

Volatility Madness and the Fed Put

Banking on Bitcoin
The Expert View ·

Banking on Bitcoin

Active vs. Passive SAAS Arbitrage
The Expert View ·

Active vs. Passive SAAS Arbitrage

How Will Urban Decline Affect Real Estate?
The Expert View ·

How Will Urban Decline Affect Real Estate?

George Goncalves: Why the Fed Wants to Avoid Yield Curve Control
The Expert View ·

George Goncalves: Why the Fed Wants to Avoid Yield Curve Control

Bitcoin and Time: The Economics of Absolute Scarcity
The Expert View ·

Bitcoin and Time: The Economics of Absolute Scarcity

Risk-On or Risk-Off: Preparing For the Next Market Crash
The Expert View ·

Risk-On or Risk-Off: Preparing For the Next Market Crash

How “Economic Scarring” and Low Rates Have Ravaged Quant Investors
The Expert View ·

How “Economic Scarring” and Low Rates Have Ravaged Quant Investors

Italy: Too Big to Save?
The Expert View ·

Italy: Too Big to Save?

Lyn Alden: Macro Maelstrom
The Expert View ·

Lyn Alden: Macro Maelstrom

The Sovereign Debt Trade of the Decade
The Expert View ·

The Sovereign Debt Trade of the Decade

The Grand Supercycle Correction
The Expert View ·

The Grand Supercycle Correction

Infinity Phase 3: The Post-COVID Paradigm
The Expert View ·

Infinity Phase 3: The Post-COVID Paradigm

Listen to the Bond Market: Major Risks Remain
The Expert View ·

Listen to the Bond Market: Major Risks Remain
33

Bond Market Secrets: Offsetting Asymmetric Downside Risk

The Expert View ·
Featuring Gershon Distenfeld

Published on: January 15th, 2020 • Duration: 33 minutes

Gershon Distenfeld co-heads a fixed-income team at AllianceBernstein that manages over $300 billion in assets. He joins Real Vision to discuss how the high-yield credit space can function as an alternative to the stock market and why the best bond investors focus on avoiding losers rather than picking winners. He underscores the importance of fixed-income diversification and gives his thoughts on leveraged loans, collateralized mortgage obligations (CMOs), and collateralized loan obligations (CLOs). Filmed on January 10, 2020, in New York.

Comments

Transcript

  • RM
    Ryan M.
    26 January 2020 @ 01:43
    0 0
    How much of quoted HY performance is due to the 50 year bull market we've had in fixed income? Lol. Leverage is great when tailwinds are at your back!!
    • RM
      Ryan M.
      26 January 2020 @ 01:45
      0 0
      40 year bull market**
  • KD
    Kaj D.
    23 January 2020 @ 09:26
    1 0
    This just may be the best discussion that I've ever heard on risk allocation / incorporating bonds into one's investment portfolio. Thanks Gershon
  • SC
    Sam C.
    22 January 2020 @ 15:06
    0 0
    Interesting to watch this after Dan Rasmussen. Totally different views.
  • JM
    Jennifer M.
    20 January 2020 @ 14:10
    1 2
    This episode made me want to be a bond trader when I grow up. You can now officially call a top in the bond bubble, rates globally going to 5% :)
  • bm
    brian m.
    20 January 2020 @ 07:04
    2 0
    That music is horrendous
  • AR
    Anthony R.
    19 January 2020 @ 22:05
    1 0
    Very articulate guy. I've always been 'equities' biased - learned a lot.
  • NB
    Nidhi B.
    18 January 2020 @ 01:12
    2 1
    Amazing interview!!
  • PG
    Philippe G.
    17 January 2020 @ 15:08
    2 0
    Excellent - learned quite a bit!
  • SL
    Seth L.
    16 January 2020 @ 17:44
    0 0
    Anyone have a link to the whitepapers referenced early on in the interview?
  • SW
    Suzanne W.
    16 January 2020 @ 15:29
    3 0
    Super interesting and enlightening interview. I learned so much - thank you.
  • ET
    Eduard T.
    16 January 2020 @ 04:35
    0 0
    Great, thanks! Very good interview
  • GS
    Gurpreet S.
    16 January 2020 @ 01:18
    0 0
    my man!
  • BB
    Bob B.
    15 January 2020 @ 22:01
    1 0
    I'm confused on his timelines. At the end he expounds on having a long time horizon for fixed income yet much of is talk is about monitoring risks and re-balancing portfolios as risks and opportunities change. To me that implies activity trading to some degree.
  • DS
    David S.
    15 January 2020 @ 21:06
    5 0
    As an aside, Mr. Kudlow announced Tax Cut 2.0 will be on the Republican platform for president Trump's reelection campaign. Any tax cut that will increase the federal deficit - they all will - is just another form of MMT. This is why I am unable to think about long-term stock or bond investing. Good luck to all of you who must stay invested. Follow Mr. Distenfeld's advice for bottom-up investing, diversification and avoiding losers. DLS
  • CB
    Chris B.
    15 January 2020 @ 20:15
    3 0
    Awesome interview - one of the best in a while.
  • SG
    Sven G.
    15 January 2020 @ 15:22
    5 0
    the guy made a lot of good points, well thought out and articulated... then he sneezed in my soup :( (he says " I dont really believe in cycles")
  • SW
    Scott W.
    15 January 2020 @ 14:21
    1 0
    Clearly a master in this space. As a non-financial, I greatly appreciate Gershon's insights and general guidance regarding how to approach bond investing because such nuance is sadly lacking for retail participants (IMHO).
  • JB
    Jon B.
    15 January 2020 @ 13:12
    0 0
    Really helpful insight
  • HK
    H K.
    15 January 2020 @ 10:47
    1 0
    hah - good take on the daily tick-by-tick liquidity of the wrapper while the underlying takes weeks to process
  • PU
    Peter U.
    15 January 2020 @ 10:34
    8 2
    Classic WS speak

Chapters

  1. 00:01:28
    What's your Fixed Income Investing Framework?
  2. 00:03:23
    How do you analyze a particular fixed income security?
  3. 00:04:21
    How do you evaluate if a bond is worth the risk?
  4. 00:07:51
    How do High-Yield Bonds Compare to Stocks?
  5. 00:13:55
    How diversified should fixed income portfolios be?
  6. 00:15:37
    What risks do you see on the horizon?
  7. 00:18:13
    What's your outlook on the high yield energy space?
  8. 00:20:25
    Which Fixed Income Asset Class do you see the most opportunity in?
  9. 00:22:48
    How does your macro framework affect your outlook for fixed income?
  10. 00:24:39
    Where in the fixed income space is diversification the most important?
  11. 00:25:52
    Do you see any illiquidity risk in the market for leveraged loans?