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3D Asset Management brings you innovative ideas from investment professionals, practice, and business management leaders. Listen in as fellow financial advisors discuss what’s working for them. Learn about best-of-breed technology, product, and practice solutions. And hear from economists, portfolio managers, analysts and investment product specialists across the industry spectrum, from mega global managers to small but innovative boutique firms.

 

Jan 7, 2019

In this episode, Tom Goodrum, Institutional Fixed Income Strategist at DFA, will share with us the firm’s perspective on the importance of understanding the key risks that drive fixed income.  Many investors are familiar with the Fama-French risk premium framework that explains the majority of expected returns within global equities, but fewer are familiar with how this same risk-based framework applies to fixed income investing.  Tom and I discuss how term premiums across government and credit yield curves can explain the bulk of expected returns in fixed income as well as DFA’s views on the state of trading fixed income and why DFA hedges its currency risk across most of their global fixed income strategies.