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Play in the bond market | passive investment strategy-bond portfolio strategy

Post-90s Illustrated Book: I always want to travel around the world when I get old, but is your pension enough?

Statistics show that in 2016, Heilongjiang became the first province in the country where pension funds were exhausted. For the moonlight clan, it is difficult to enjoy being chic every month, and saving money for the elderly is really a spit of blood.

In order to solve this pain point, Niuniu will clarify in this article how to carry on the stable asset allocation through the bond in the personal financial management.

1. Bottom line of earnings: fighting inflation

If your primary concern is safety, you need to focus on the reliability of the issuer of the bond, whether the credit rating is within investment grade, and, above all, whether you can outperform inflation.

The recruitment manual clearly sets the fixed interest rate and expected yield on the bond, and if its interest rate is higher than the inflation rate, you can keep the bond until the maturity date.

If its interest rate cannot beat the inflation rate, then please accept the soul to ask: what kind of salted fish is an investment product that even inflation can not withstand? Come on, abandon it.

2. Two investment strategies: ladder and dumbbell

The bond god has summed up two sound investment strategies.

Strategy 1: ladder combination (Laddering)

"The child is going to junior high school this year, and the college entrance examination is still five years away. After graduating from college in 9-10 years, and falling in love and getting married 15 years later, there is a large amount of cash flow to spend about every five years."

Congratulations, with the expected expenditure has taken the first step in financial management! The purchase of bonds can be distributed in this way:

Ladder strategy means that the amount of each maturity bond in the portfolio is basically equal. Such as one-time purchase of one-year, five-year, 10-year, 15-year bonds, the maturity date corresponds to the time point of each large expenditure, so as to ensure the circulation of urgent money and gain returns at the same time.

In addition, ladder layout can also effectively avoid the risk of market interest rates, taking into account stability and profitability.

Strategy 2: dumbbell combination (Barbell Approach)

Dumbbell strategy refers to the fact that the bond maturity in the portfolio is concentrated in two extreme matures. by selecting the two types of investment products with great differences in style, the portfolio has some advantages of both types of investment products, and at the same time, it can avoid the losses caused by some market fluctuations.

Short-term bonds can ensure the overall liquidity, long-term bonds can ensure the overall profitability, everyone can determine the proportion of holdings according to their own capital flows, the forecast of market interest rates.

3. Duration: a reference to the maintenance of beyond the concept of time

Duration is the average time to recover all its principal and interest, but in practice, it is not only the concept of time, but also a reference to measure bonds to resist interest rate risk.

The master who put forward the concept of duration must be a werewolf. Here Niuniu reveals the formula for calculating the duration of the period, and good friends in mathematics can study it.

Simply understand, the shorter the duration, the smaller the fluctuation of bond price, the smaller the risk; the longer the duration, the greater the fluctuation of bond price, the greater the risk. So if you want to focus on security, try to choose bonds with short periods of time.

4. Diversified allocation: the surprise of the Global Nuggets

In recent years, global diversified investment has become the general trend, especially emerging market sovereign debt has received more and more attention.

The bonds of a single country are affected by macro-policy and economic environment, and have a strong linkage. Many investors invest in multiple markets to reduce the risk factors brought about by the single market and promote the steady rate of return.

But at present, ordinary investors have limited channels to buy global bonds directly, mostly through bond funds. As for what the bond fund is, cattle and cattle are temporarily sold.


All of the above belong to the passive investment strategy which pursues preservation and holds for a long time. However, in the market where interest rates are fluctuating, there is still a need for more active investment strategies to avoid risks. Curiously, you must not miss the next issue!

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