Convexity but not at all costs

Convexity but not at all costs

Positive convexity tends to be a highly desirable feature for institutional investors, yet the means to this end can differ vastly. Indeed, the many paths leading to asymmetric returns vary in terms of method and cost. While our solutions approach convexity from different angles, they are united in their goal of optimising asymmetry in the most cost-effective way possible.

scopri di più
Convertibles build in convexity for ups and downs

Convertibles build in convexity for ups and downs

As a hybrid asset class, convertible bonds do a remarkably simple thing: they provide natural, long-term convexity at a reasonable price. In fact, convexity is built into convertibles the way cupboards are built into kitchens: it is integral to the proposition.

scopri di più
Alternatives, mispricing and convexity

Alternatives, mispricing and convexity

Our Alternatives team constructs highly-bespoke strategies that are naturally, structurally convex while also featuring limited or no negative cost of carry. Such opportunities seek to exploit mispricing in the market in order to maximize the positive convexity of investors’ exposure. Harvesting such opportunities requires specialists to overcome the ample barriers to entry.

scopri di più
Multi-asset and managing downside risk

Multi-asset and managing downside risk

As investors continue to focus on downside risks, we have tailored our multi-asset approach to help manage drawdowns while also capturing upside participation. Through precise design, we seek to embed convexity into our portfolios, and review strategies with appealing asymmetry.

scopri di più
Improving convexity in credit

Improving convexity in credit

Fixed income as an asset class is inherently negative convexity. To reduce the impact, our fixed income team focuses on areas of the credit spectrum with better ratings resilience. We believe that the crossover area of bonds – rated BBB to BB – could help investors improve their convexity exposure. Our way of building portfolios based on quality further enhances convexity.

scopri di più