Daily Archives: June 28, 2016

Unconstrained Bond Funds: A Closer Look

Unconstrained bond funds are unique in their ability to invest in a wide range of debt instruments—in terms of sector, country, or currency, without duration constraints—as well as derivatives. Since the global financial crisis, interest in the funds has grown as the AUM has expanded over 15-fold to USD 140 billion from 2008 to 2015.

Unconstrained bond funds can pose unique challenges for measuring and understanding their performance due to the fact that they are not managed against a specific benchmark.

Find out what style and principal component analysis (PCA) can tell us about unconstrained bonds’ correlation to U.S. fixed income and the global fixed income markets.

  Read more