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A Barra View of Active (Fixed Income) Management--Part 4
Sep 1, 1989
In our May, June, and August (1989) Newsletters (see "A Barra View of Active Management: Parts 1, 2 and 3", U.S. Newsletters # 117/ 188, 120), we explored some aspects of active management. We looked at utility as the measure of an active portfolio. This concept can be applied to managers who use quantitative techniques for developing their insights and those that use more qualitative approaches. Either way, maximizing portfolio utility makes good use of manager insights, while avoiding unnecessary risk. These recent articles used U.S. equity management examples. This paper explores how these ideas make sense in a fixed income context.