Important Information

THIS WEBSITE IS INTENDED FOR INSTITUTIONAL INVESTORS who are U.S. residents ONLY; not intended for access or distribution to retail investors.

 

In order to access the Capital Group U.S. Institutional website (the “Site”), please read the following information and affirm by clicking the accept button that you have read and understand the information provided.

 

You must attest that you meet the qualifications of an institutional investor as described herein and accept these Terms and Conditions in order to access the Site. Some content may require additional registration for access.

 

The Site is solely intended for U.S. residents who are institutional investors or are acting on behalf of an institutional investor who has agreed to these Terms and Conditions. Institutional investors include, but are not limited to any person acting on behalf of/any pension fund, financial intermediary, consultant, endowment and foundation, bank, savings and loan association, insurance company, investment company registered under the Investment Company Act of 1940, investment adviser registered with the U.S. Securities and Exchange Commission or under applicable state law, government entity, entity with total assets of at least $50 million, employee benefit or qualified retirement plan with at least 100 participants, defined contribution/benefit plan, and qualified client or purchaser as defined by the U.S. Securities and Exchange Commission. By agreeing to these Terms and Conditions you are affirming your understanding that the Site is not intended for retail investors, individual plan participants or others who may not possess the financial sophistication to independently understand the content nor should it be redistributed to such persons.

 

You understand that the Site does not constitute advice of any nature, including fiduciary investment advice by Capital Group or its associates.

 

The reference to “Capital Group” used herein includes The Capital Group Companies, Inc., and its affiliates.
Categories
Are long-duration Treasuries the best equity hedge?
Sunder Ramkumar
Quantitative Analyst
Andrew Bates
Multi-Asset Strategist

 


Yield curve dynamics have not always been easy to predict during episodes of stock market stress in recent years. A Capital Group quantitative analyst, Sunder Ramkumar, and multi-asset strategist, Andrew Bates, studied the link between bond maturity and equity diversification in developed economies during the last six decades ending in 2019.

Key takeaways:

  • Yield curve dynamics don’t always follow the same pattern during periods of stock market stress.
     
  • Long-maturity bonds have offered investors mixed incremental diversification benefits.
     
  • Duration management should be an active investment discipline for investors.

You must be logged in to download the PDF.

DOWNLOAD PDF

 


Sunder Ramkumar is a quantitative analyst with 19 years of industry experience (as of 12/31/2022). He holds a master’s degree in management science and engineering from Stanford University.

Andrew Bates is a multi-asset strategist with 15 years of industry experience (as of 12/31/2022). He holds an MBA from the University of California, Berkeley Haas School of Business.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.