Benchmarks in turmoil

Professional Adviser
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As the Japanese government continues to issue bonds and the US government buys back more debt, fixed...

As the Japanese government continues to issue bonds and the US government buys back more debt, fixed income fund managers are having to cope with the havoc this is wreaking on their benchmarks. Fund managers are contacting their clients with a view to renegotiating their contracts in order to allow them to change benchmarks to fit an unprecedented change in the global bond markets. To avoid high tracking errors, managers have had to pull money out of the US bond market and into low-yielding Japanese bonds. Over the last five years, the US share of the JP Morgan Global Bond Index has drop...

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