Trader TV Features Bryn Jones in This Week's Interview from Rathbones
Article Title: Bryn Jones Discusses the Future of Active Management in Credit Markets
In a recent article published on Trader TV, Bryn Jones, the head of fixed income at Rathbones, discusses the current influences on credit markets and what active managers should pay close attention to over the next few months.
Jones highlights the steepening yield curves across government bonds as a significant point. This trend, he explains, could present both opportunities and challenges for active managers seeking to navigate margin pressures.
The rise of passive investing is another topic that Jones discusses in the article. He notes a behavioral shift from TINA (There Is No Alternative) to equities to TANIA (There Is Now Investment Alternatives). This shift, he suggests, is creating a more competitive landscape for active managers who are differentiating themselves through strategies like active management and alpha generation.
Key active fund managers have been focusing on such strategies to distinguish themselves from passive investment strategies. For instance, the Carmignac Portfolio Flexible Bond was recognised for its active management in the Eurozone bond sector. Meanwhile, managers like Austin Forey from JP Morgan have been concentrating on emerging markets recovery.
Jones also shares his thoughts on what else is on his radar for the rest of the year. He discusses how active managers are seeking to navigate margin pressures and how they are differentiating themselves to remain competitive in the market.
The impact of passive investing on markets is a focus of Jones' discussion. He emphasises that while passive investing has its advantages, it also poses risks, such as herding behaviour and a lack of flexibility. He argues that active management can offer a more tailored approach, allowing managers to react quickly to market changes and seek out opportunities that passive strategies might miss.
In conclusion, Jones' article provides valuable insights into the current state of credit markets and the strategies active managers are employing to remain competitive in the face of increasing passive investment. As we move forward, it will be interesting to see how these trends develop and how active managers continue to adapt.
