Adjustment strategy of fixed income fund for continuous default of credit bonds

category:Finance
 Adjustment strategy of fixed income fund for continuous default of credit bonds


Yang Yijun, fund manager of the fixed income investment department of Societe Generale fund, said that in the past few years, financial supervision has become increasingly strict, the asset management system has returned to the origin of trust, and gradually formed a unified framework, and the traditional belief of rigid cashing has been gradually broken. Debt market leverage, multi-layer nesting, fund pooling and other behaviors are strictly prohibited. Leverage strategy, maturity mismatch, credit sinking and other operations are becoming more difficult. The traditional bond profit model of rigid cashing + leverage arbitrage is coming to an end. At the same time, with the normalization of credit default events, the difficulty of credit screening is increasing, and it is more difficult to obtain the opportunity of credit bond alpha in the future. Therefore, bond investment needs more detailed research on individual bonds in order to obtain excess returns. In the future, fund risk preference will be more cautious.

In addition, Yang Yijun also believes that the key to bond investment is to pay attention to cost efficiency and risk matching, and the important premise of doing a good job of bond investment is to constantly improve the professional management ability, always take the interests of investors as the primary goal, and be diligent and responsible. In Yang Yijuns opinion, fund managers should not only earn capital gains through macro research and trend control, but also enhance portfolio returns by seizing trading opportunities in volatile or even bear markets where trend opportunities are not obvious. The long-term result of the duration game may be a five or five point probability. If a bond fund can win 50% of the trend in the long run, the other 50% can be further enhanced through trading.

In addition to paying close attention to macroeconomic data, fund managers should also be sufficiently sensitive to the valuation, secondary transactions and recent price changes of securities of various varieties, maturities and risk levels at different time points. Yang Yijun stressed that in the investment operation of interest rate bond products, it is effective to find excess return individual bonds by screening wrong valuation pricing, and create marginal contribution of excess return for portfolio from the transaction level. For credit varieties, it is the core logic of credit bond investment to insist on doing credit research well, selecting low-value high-quality individual bonds and obtaining stable coupon income.

Zhang Xiaofeng, the fund manager of the fixed income investment department of AXA Pudong Bank, reminds investors not to buy products whose yield obviously deviates from the market. Bond funds can not make a very high yield, if done, the risk will be very large. Some investors like to look at the returns in the past few years when buying funds, but if the fixed income varieties have enjoyed a high rate of return in the past few years, then the risk may be greater in the future. Zhang Xiaofeng believes that due to the asymmetric risk of credit bond investment, we must wait until the risk is relatively symmetrical to buy. The timing strategy of bear market can not only obtain the long-term return from bear market to bull market, but also obtain the benefit of narrowing interest rate spread. Zhang Xiaofeng said that in the previous research on credit bonds, the fund paid more attention to the factors such as the background of the state-owned enterprises and the capital income of shareholders, the qualification of shareholders and the degree of correlation between subsidiaries and shareholders. After the credit crisis, the research system may be adjusted. For example, we may pay more attention to whether the major shareholders of the debt issuing entity will arbitrarily transfer the assets or equity of the rotor company. If the shareholders transfer assets to the subsidiaries frequently, it indicates that the business structure of the enterprise is not stable enough. Source: Ren Hui, editor in charge of Securities Times_ NBJ9607

Zhang Xiaofeng, the fund manager of the fixed income investment department of AXA Pudong Bank, reminds investors not to buy products whose yield obviously deviates from the market. Bond funds can not make a very high yield, if done, the risk will be very large. Some investors like to look at the returns in the past few years when buying funds, but if the fixed income varieties have enjoyed a high rate of return in the past few years, then the risk may be greater in the future.

Zhang Xiaofeng believes that due to the asymmetric risk of credit bond investment, we must wait until the risk is relatively symmetrical to buy. The timing strategy of bear market can not only obtain the long-term return from bear market to bull market, but also obtain the benefit of narrowing interest rate spread.

Zhang Xiaofeng said that in the previous research on credit bonds, the fund paid more attention to the factors such as the background of the state-owned enterprises and the capital income of shareholders, the qualification of shareholders and the degree of correlation between subsidiaries and shareholders. After the credit crisis, the research system may be adjusted. For example, we may pay more attention to whether the major shareholders of the debt issuing entity will arbitrarily transfer the assets or equity of the rotor company. If the shareholders transfer assets to the subsidiaries frequently, it indicates that the business structure of the enterprise is not stable enough.