How are Woolnough, Bowie and co protecting bond funds amid sell-off?

Bill Street head of investments EMEA at State Street Global Advisors   Duration hedges The main impact of the bond sell-off on portfolios comes from the interest risk sensitivity, also referred to as duration. The magnitude of impact varies however in different regions. Active positioning involves shortening interest risk exposure vs the index and flattening curve positions. A longer-term approach for some corporate bond portfolios is to build duration hedges across the curve to neutralise this risk. In an environment where credit continues to hold up, hedging interest rate risk ...