Big Question: How are you protecting bond portfolios amid the sell-off?

Jan Straatman CIO of Lombard Odier Investment Managers   Credit default swaps As the ‘prop’ of QE is removed, in these choppy markets we are using what we call a ‘total rate of return’ approach. This includes extreme nimbleness, so we can benefit from rallies, while ensuring that when rates do rise the portfolio still delivers a positive return. It may include exposure to five-year bonds with good fundamentals, but with the shortish maturity risk hedged out by using swaps. Or it may include selective exposure to corporate bonds as value starts to re-emerge; or owning broad inflat...