Survey of fixed income managers

The onset of the COVID-19 pandemic saw central banks taking supportive actions to mitigate the business impact of the resultant lockdowns. Set in the backdrop of investors’ hunt for yield amid recovering growth and rising inflation, our survey tried to assess the manner in which fixed income asset managers navigated the challenging times.
It further analysed the importance of credit research for fixed income asset managers, the level of satisfaction and preferences of fixed income research teams amid the changing landscape. The survey offered insights on the key challenges faced by fixed income research teams as well as the possible solutions that can help improve operational flexibility.

Key Takeaways

1. As the easing cycle ends, respondents had a neutral view on fixed income markets and indicated that certain sub-segments, such as distressed debt and collateralised debt obligations, will offer pockets of opportunity from repricing.

2. High inflation and anemic growth sentiment remain the key near-term headwinds for asset managers.

3. During the turbulent times, 90% of the respondents believed that superior research is the key to generating alpha.

4. 75% of the respondents were either unhappy or only moderately satisfied with sell side research and rating agencies due to various limitations.

5. 50% of the respondents considered offshoring of research as a potential solution to enhance team performance but had reservations on data privacy.

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