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State Street Global Advisors Launches the SPDR Bond Compass
Traders Magazine Online News, November 6, 2018
State Street Global Advisors (SSGA), the asset management arm of State Street Corporation (NYSE: STT), announced today the launch of the SPDR Bond Compass, a quarterly publication intended to provide investment professionals with quality data and investment outlooks, which they can use to engage their clients on fixed income investment strategies.
The Bond Compass uses proprietary research from State Street Global Markets, the research and trading division of State Street, and provides unique insight into how investors are positioning their portfolios.
“The overall sense from our metrics is that, despite recent volatility, investors remain cautiously optimistic about growth in the medium term,” commented Michael Metcalfe, global head of Macro strategy for State Street Global Markets. “Bond flows are indicating that investors view inflation as broadly benign and are not currently troubled by the inflationary outlook, a trend confirmed by our online metrics through early October. What we are seeing is a re-assessment of risk and a review of holdings across the curve, but not wholesale protection purchasing. If you add to that some modest buying of credit, the flows seem to indicate that long term investors are not panicking just yet.”
The analysis shows current indicators of investor holdings in a variety of fixed income instruments and overlays buying and selling behaviours from the past quarter. These data points provide deep insight into investor sentiment and allow observers the opportunity to cut through the noise of the market to see the reality of the investor positions beneath. The contrast between existing holdings and recent buying trends enables additional insight into investor outlook for exposure in the future.
“Clients’ use of Fixed Income ETFs continues to expand and investors are increasingly looking for valued-added insights to tailor bond portfolios for the current market,” said Matt Bartolini, head of SPDR Americas Research at State Street Global Advisors. “Throughout the year we have seen investors de-risk credit portfolios, moving from fixed-rate high-yield ETFs to loans, while also shortening duration and adding some principal preservation. As a result short-term government bond ETFs have seen a 59 percent increase in assets. The Bond Compass provides data driven insights our clients need, along with our timely investment outlook and the necessary tools for action.”
State Street Global Advisors manages $376 billion in fixed income assets, managing over 30 currencies across 40 countries and 90 fixed income strategies.
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