Global Fixed Income Markets and Portfolio Management

The globalization and innovation of the world's fixed income markets in the past two decades have created tremendous opportunities for investors and portfolio managers who are seeking more investment alternatives, return enhancement, and risk diversification. This chapter discusses recent advances in global fixed income markets, focusing on four areas that deserve the most attention: the creation of the Euro and its impact on the global bond market, securitized debt and covered bonds, inflation-linked bonds and emerging market bonds. Finally, I discuss the risk management of fixed income portfolios in a global context.