• OpenMetrics

Protected Global Bonds

Updated: Jun 26, 2019

Combining advanced risk management with fixed income products

Most of the risk management focus is typically set on “risky” assets like equities, commodities, forex, etc., whereas (unleveraged) bonds are mostly considered as a “safe haven” and kept in larger portfolio proportions without necessarily running a risk management overlay on top.

In this short use case, we show the results of combining advanced risk management technology with a portfolio of common fixed income exposure. For this purpose, we use standard bond indices as benchmarks.

Even tough applying risk management overlays to bond portfolios may seem superfluous, the main benefits are:

1. A significant protection against severe market crises and

2. An improvement of risk-adjusted returns

You may download the paper via: