Markets

A bond investor outperforms

Stephane Monier, chief investment officer for fixed income and currencies at Lombard Odier, explains the logic of using a fundamentally weighted rather than the traditional cap-weighted approach to bond investing. Lombard Odier's indices are weighted according to the borrower's ability to repay, be it a country or a company, instead of how much the entity has borrowed. The new approach delivers outperformance in fixed income investing compared to the traditional method.