U.S. Fixed Income

Janelle Woodward discusses the current state of fixed income markets

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BrightTalk Expert Interview Janelle Woodward

Janelle Woodward, Global Head of Fixed Income, joined BrightTalk at IMPACT® 2018 for an exclusive interview on the current state of fixed income markets and what it means for advisors and investors in 2019 and beyond.

 

Topics discussed include:

  • Entering a bond bear market
  • What’s going on with interest rates?
  • Using alternatives in a portfolio
  • A discussion on inflation
  • Is a crisis looming with credit and student loans?

 

Click here to subscribe to insights from Janelle and the rest of the U.S. fixed income team.

Video transcript

Ben Jones: I’m Ben Jones, Managing Director at BMO Global Asset Management and co-host of BMO’s Better conversations. Better outcomes. podcast. I’m joined here by Janelle Woodward, and we just wrapped up the BrightTalk fixed income panel. And we wanted to take a minute here, we’re having a lot of fun at Schwab talking a lot of fixed income, and wanted to spend some time with Janelle talking a little bit more in depth about some of the ways that they’re taking advantage of the current market conditions. Welcome to the show, Janelle.

Janelle Woodward: Thank you so much.

Ben Jones: So Janelle, I know that everybody who talks to you probably asks you, the first question they want to talk about is the Fed, but the first question I want to talk about is something we’ve been having a lot of fun with, which is, fixed income has kind of become your life’s work. How did that happen and why is that important to you?

Janelle Woodward: I think if I’m honest, I was not lying awake as a child, dreaming about doing fixed income for the rest of my life. I was lying awake dreaming about math problems and spreadsheets, and so I’m not sure if I found fixed income or it found me, but it’s been a really great fit and very rewarding. I think what I love about it is, it’s in everybody’s portfolio, directly or indirectly, everybody has exposure to fixed income markets. And then, really, it’s about the themes that get captured, everything from what’s going on at the government level, to corporate levels, so it intersects with equity markets, to the consumer level in terms of consumer finance, and it’s constantly changing and evolving. So we often get told we’re very boring, but I think it’s a really interesting aspect and area of the world.

Ben Jones: Now fixed income is at a different period of time. We’ve just gone through a very extended bond bull market, and now we find ourselves in a situation where a lot of people are saying we might be in a bond bear market going forward. Tell me a little bit about you and your team’s thoughts about the current market conditions.

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The views expressed here are those of the participants and are not necessarily those of BMO Global Asset Management, its affiliates, or subsidiaries. This is not intended to serve as a complete analysis of every material fact regarding any company, industry, or security. This presentation may contain forward-looking statements. Investors are cautioned not to place undue reliance on such statements, as actual results could vary.

Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed-income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. Keep in mind that as interest rates rise, prices for bonds with fixed interest rates may fall. Diversification does not ensure a profit or guarantee against loss.

Alpha: is the incremental return of a manager when the market is stationary. In other words, it is the extra return due to nonmarket factors. This risk-adjusted factor takes into account both the performance of the market as a whole and the volatility of the manager.

De-Risk: Refers to the activities or series of activities which help to mitigate risk.

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