The common sense alternative we call fundamental fixed income.
Would you lend your money to someone with an unstable income who is already jugging lots of debt? The answer is probably ‘no’. Yet that is largely what traditional market-cap based bond indices do. The more debt a country has, the higher their capacity to borrow is. The result is more debt is piled up on existing debt.
Our approach to bond investing is different in our opinion. It starts with a borrower’s ability to repay rather than their capacity to borrow. Fundamental fixed income is our philosophy – watch our video below.