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Notes from the CFA Institute Fixed Income Conference
The CFA Institute just held its 2012 fixed income conference in San Francisco.
Speakers shared a very broad range of perspectives on fixed income issues over the course of about a dozen sessions.
Session notes and observations (in no particular order) include:
Demographics and Deleveraging -- Rick Rieder, Blackrock
The Best Idea in Light of Demographic and Fiscal Challenges -- Scott Simon, PIMCO
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Are Inflation Adjusted Annuities Worth the Cost?
Inflation protection for fixed annuities would seem to be a sensible consideration given the fact that central banks around the world are doing everything they can to reflate in the wake of an historic deleveraging.
After all, the worst possible place to be if and when inflation does kick-in is on the receiving end of nominal (not adjusted for inflation) fixed payments, and most fixed annuities fit this description perfectly.
While the inflation protection makes sense in theory, it turns-out that inflation-protected annuities may not be so sensible in practice....
Why Fixed Annuities Could Prove Toxic in an Era of Financial Repression
In a recent and highly recommended Bloomberg op-ed, Carmen Reinhart discusses the options available to governments and central banks when attempting to deal with the burden of enormous amounts of public and private debt.
Reinhart suggests that the preferred policy option for many governments--including the United States--is a form of stealth taxation that amounts to...
Pimco’s Gross Describes a New Age of Risk
Pacific Investment Management Company (Pimco) founder and co-chief investment officer Bill Gross offered a revised view of the global investing landscape in a letter published on the company’s website.
As the manager of the Pimco Total Return Fund, Gross’s 2011 investment decisions were driven in part by the “new normal” thesis.
The new normal view...
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