Reference no: EM132020497

Armed with your basic understanding of bonds and bond markets, your task is, mostly based on external research (outside your book and the material provided in this class) to explain what is the best bond investment strategy going forward, considering the recent large macro event, which is the end of QE and an expected rise in interest rates (accelerated post Trump election win). Keep in mind that you can't simply say I would invest in bonds or I will not invest in bonds. Similar to many bond fund managers, just like myself, you have no option. You have been given billions of dollars in money from investors to invest in the bond market and you can't sit idle, you must go out there and invest it in the bond market. But at the same time, you must be aware of the fundamental trends in the bond market and not blindly invest, but have an appropriate strategy that is customized to the anticipated trends. What I'm looking for here is not much of an individual bond picks, "I'm going to invest in IBM bond or I will invest in Amazon bond" but what bond features should you be looking for that best fits the current bond environment. The big clue here is "duration", so get to know that concept from your book and any other research material. . Again, focus on the big picture items such as QE, duration and the big unknown, the continuation of the QE effort in Europe. Research shouldn't be any issue, as the Fed, Bank of Japan and European Central Banks are all in the headlines. Based on what you find, tell me what's the bond investment strategy you would develop and what features will you focus on when creating the bond portfolio.