Swan Global’s Odo On The State Of The Bond Market

Marc Odo, CFA®, CAIA®, CIPM®, CFP®, Client Portfolio Manager, Swan Global Investments met with Julie Cooling, Founder & CEO, RIA Channel to discuss his firm’s fixed income outlook and how investors can protect their capital. “We are very bearish on bonds,” says Odo. Historically bonds have played two vital roles: generating income and capital preservation. Swan Global Investments believes that going forward, bonds won’t effectively serve both of those traditional roles. “Investors are stuck in a corner,” says Odo on the possibility of duration risk or lack of income. Odo encourages advisors to think outside of Modern Portfolio Theory’s 60/40 stock-bond mix. Alternatively, Swan’s Defined Risk Strategy, always stays invested in the market, but offers protection through long term put options. Advisors can leverage this strategy in a fund, separately managed account or model. To learn more on this topic, head here.