High tracking error due to difficulty in getting exposure to thinly traded bonds
Higher transaction costs from high bid/offer spreads pose a persistent source of performance drag
We trade customised baskets of bonds to create broad, diversified, index-like exposures, rather than trading individual bonds over-the-counter (OTC), which is costly and slow.
We employ an innovative portfolio trading approach, taking advantage of our expertise in the rising ETF ecosystem in fixed income, which aims to reduce transaction costs.
CHALLENGE
INSIGHT'S APPROACH
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