SFI Master Classes

Despite significant uncertainty about future central banks actions and the possibility of rising interest rates, financial markets currently still need to deal with a low interest rate environment. Achieving attractive returns on fixed income investments remains challenging. The resulting hunt for yield leads to increased risks in terms of positioning, liquidity, and vulnerability to interest rate and spread risks.
Thus, developing innovative solutions with attractive yields but also with lower correlations to existing risks in client portfolios has become an exceptionally demanding task. The traditional focus on duration and rating alone no longer seems sufficient in the current environment. Accordingly, factor-based models—in the same vein as those used for equities—are currently being explored. But their practical application in bond investment strategies to increase performance and lower risk correlations is challenging.

Objective

The Master Class provides an in-depth understanding of factor models being applied for bond investments. It provides a thematic overview from an academic perspective and discusses the most relevant factors for modern fixed income investment strategies. The following topics are addressed including on hands-on group problem solving:
•    Industry challenges leading to alternative investment approaches
•    Theoretical foundations of fixed income factor models
•    Discussion of established factor investing strategies for bonds
•    Considerations of how factor investing can be integrated into portfolio management

Target Audience

The Master Class is aimed at professionals in the financial industry who work in Institutional Banking, Asset- and Wealth Management, and as well in Investment Banking. 

SAQ Recertification

This Master Class is an acknowledged SAQ recertification measure for the CWMA profile and comprises four learning hours.