Tactical Asset Allocation


Risk & Optimization

Institutional Investment Jahrbuch, 87–93 (2012)


The past few years have been characterized by a number of dramatic events and developments: the collapse of Lehman Brothers, Fukushima and the sovereign debt crisis are buzzwords for events that will be remembered for a long time. As a result, there are justified concerns on the investor side with regard to the economic outlook. Another development – and one that is just as dramatic – can be observed in the bond markets. Since the early eighties, yields on government bonds have declined steadily for the most important issuers. While German government bonds promised interest rate terms in the double digits in the early eighties, short-term German government bonds yielded close to zero percent in the spring of 2012. This development has serious consequences for institutional investors with respect to their performance needs and the corresponding asset structure.

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