Shaped by the GFC, tighter regulations, the rise of non-bank lenders, and higher financing costs, today’s fixed-income market is a different beast. The introduction of AI and algorithm-driven strategies has brought much-needed liquidity and efficiency. However, it has also heightened market volatility, making traditional passive approaches less effective.
Vimal highlights that success in this evolving landscape requires a flexible, forward-thinking approach that embraces innovation and adapts to the ever-changing constraints of the fixed-income market. The golden age of passive fixed-income investing may be over, but for those willing to embrace a more active, data-driven strategy, there are exciting new opportunities to generate alpha.
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