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    Wealth Management Portfolio

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    Bond portfolio - Wealth Management Portfolio

    Please provide assistance for below questions I am facing.

    I am looking for assistance to work on a diversify fixed income portfolio that can provide 3% to 6% yield in return.

    I am looking to for a key background history about what happened to Bond market in 2015, and provide a detail forecast as to what might happen for the next 1 to 2 years.
    And then pick 3 Bonds each from Emerging Market, and 3 from China Dim Sum Bond market, and 3 from US market, and 3 from Europe.
    So there should be a total of around 15 Bonds selection from the above mentioned 4 markets.

    The choice of Bonds is not the key factor to what I am looking for, the Bonds are just some examples, but I am hoping you can provide me some good understanding to Fixed Income, please let me know what happened in 2015, and please use recent finance news reference to support your forecast regarding to your Bond choice.

    Some details graphs & trends to show your forecast yield, such as Bloomberg Terminal description to support your Bond choice would be great.

    Thanks

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    Solution Preview

    The response addresses the query posted in 2023 words with APA References

    //The fixed income bearing investments are the investments that generate a fixed income over the period of time and return the principal amount at maturity such as bonds, debentures, and bank deposits. Thus, by investing in the bonds and debentures, the investor can receive fixed coupon at the agreed rate over a period of time. In this context, the background and recent trend in the bond market, across the world, has been discussed in the following section.//

    Background of Bond Market and Recent Trend

    The bond market is a place like the stock market, where the investor can buy and sell the bonds and debentures. Primarily, the bonds are issued by the government of a country and the private corporations (Richelson & Richelson, 2011). Understating the risk and return profile of the bonds and another fixed income bearing securities is an important aspect for the investors. Since the securities like bonds are issued by the government of a country, it is also important to understand the economic conditions of the country before taking the investment decisions. In particular, the public debt of the country and growth in gross domestic product is crucial for the investor to be considered before taking the investment decisions (Richelson & Richelson, 2011).

    In the year 2015, the 10-years treasury yield on the US bonds has been found to be increasing rapidly. The 10-years treasury yield on the US bonds increased in the second half of the year 2015. A graph has been presented hereunder, which depicts the growth in the 10-year treasury yield on the US bonds in the year 2015:

    (See the figure)

    [Source: https://research.stlouisfed.org/fred2/data/DGS10.txt]

    The chart shown above depicts that the yield has increased significantly in the year 2015 on the 10-years treasury US bonds. Thus, a bullish trend has been observed in the US bond market in the year 2015, which reflects the attractiveness of the US bond market for investment.

    The economy of the United States has again shown a trust and faith to the investors, which is evident from the boom in the US bond market in the year 2015. In the month of October 2015, the corporation in the United States sold bonds worth $103 billion, which is a record sale over the period of time (Cherney, 2015). In contrast to the boom in the bond market in the United States, Europe experienced a downturn in the year 2015. The year 2015 happened to be the most disappointing to the bond investors in Europe. The primary reason for the collapse of the bond market in Europe has been considered to be a financial crisis in the countries falling in Euro Zone and particularly the Greece debt crisis (Kirwin, 2015).

    (See the figure)

    Figure: Showing Collapse of Bond Market in Greece

    [Source: http://www.marketwatch.com/story/what-the-bond-market-is-telling-us-about-greek-default-2015-06-23 ]

    The graph, as shown above, depicts the downfall in the bond market in Greece after the debt crisis. The bond market fell significantly after ...

    Solution Summary

    Wealth management portfolio is examined. The response addresses the query posted in 2023 words with APA References.

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