
Fixed income markets over the last fifty years have been shaped by a small number of defining product and market developments.
– The 1960s saw the birth of the Eurobond market, which globalised dollar bond markets.
– The 1980s saw the birth of passive investing, which gave investors an alternative to actively managed products for the first time.
– The 1990s saw the development of the credit default swap market, which deepened liquidity and facilitated long/short credit investing.
– The 2000s saw the birth of domestic credit markets in Europe and the Emerging Markets, which globalised credit investing.
We believe that scientific active investing, as an alternative and complement to both passive and traditional active investing, is set to be the next such defining development for the US$52 trillion fixed income industry.