Why take a data-first approach to fixed income investing?

By Adam D. Abbas

A data-first approach to fixed income investing

Harris Associates’ Adam Abbas looks beyond the market noise of inflation and the Fed to recognize the long-term investing value of fixed income and its ability to generate stable returns over extended periods.

Adam Abbas, Head of Fixed Income at Harris Associates, adviser to the Oakmark Funds, explains why it’s important to focus on what the data and fundamental bond research is telling his team – especially when market noise on inflation and the Fed is at deafening levels. He believes fixed income investing – and its stable coupons in today’s landscape of higher nominal yields – make it attractive for buy-and-hold investors, such as Oakmark.

Video highlights include Abbas’ perspectives on:
  • Misconceptions of high inflation preventing fixed income investments from generating returns.
  • Navigating interest rate volatility and market uncertainty.
  • Credit valuations: are they too expensive?
  • Expected real returns for buy and hold to maturity.
  • The case for a long-term, fixed income investing view.
The information, data, analyses, and opinions presented herein (including current investment themes, the portfolio managers’ research and investment process, and portfolio characteristics) are for informational purposes only and represent the investments and views of the portfolio managers and Harris Associates L.P., as of April 23, 2024, and are subject to change and may change, based on market and other conditions, and without notice. This content is not a recommendation of or an offer to buy or sell a security and is not warranted to be correct, complete or accurate.

There can be no assurance that developments will transpire as forecasted. Actual results may vary.

Investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.

Bond values fluctuate in price, so the value of your investment can go down depending on market conditions.

Natixis Distribution, LLC (Member FINRA|SIPC) is a marketing agent for the Oakmark Funds, a limited purpose broker-dealer, and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers.

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