The art of actively managing interest rate risk

For several years, many fixed income managers have assumed that better information ratios could be achieved through active credit decisions rather than managing interest rate risk. But with central banks retreating, the environment has changed, meaning those days of artificially low interest rate volatility are likely behind us. In this article, Amanda Stitt explains why active interest rate management should go beyond duration and into areas such as country selection, convexity, curve positioning and security selection.