Investing In A Low Interest Rate Environment

With yields on fixed income portfolios near all-time lows, COVID-19 has added to the investment challenges facing many individual investors and organizations.

Investment Counsellor Philip Doyle and Portfolio Manager James Arnold address the challenges and opportunities currently facing fixed income investors. In a conversation fitting for individual, not-for-profit, and institutional investors, they break down bonds, examine the pandemic’s effect on credit markets, and explore why Burgundy focuses on a company’s balance sheet.

Highlights of the session include:

  • 01:33: The different sectors in fixed income
  • 6:42: Interest rates, credit markets, and the impact of COVID-19
  • 11:12: Micro-level risks in bonds and why we focus on: (1) a company’s balance sheet and (2) a management team’s attitude towards capital allocation

The transcript of the session has been edited for clarity.

If you would like to see the full video to also learn about the following, among other discussion points, please contact us:

  • Why we believe active credit management is where the best opportunities lie in fixed income today.
  • How can fixed income help meet an investor’s objective?

 


This post is presented for illustrative and discussion purposes only. It is not intended to provide investment advice and does not consider unique objectives, constraints or financial needs. Under no circumstances does this post suggest that you should time the market in any way or make investment decisions based on the content. Select securities may be used as examples to illustrate Burgundy’s investment philosophy. Burgundy funds or portfolios may or may not hold such securities for the whole demonstrated period. Investors are advised that their investments are not guaranteed, their values change frequently and past performance may not be repeated. This post is not intended as an offer to invest in any investment strategy presented by Burgundy. The information contained in this post is the opinion of Burgundy Asset Management and/or its employees as of the date of the post and is subject to change without notice. Please refer to the Legal section of this website for additional information.

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