The Fair Value Enigma: Deciphering Fixed Income in Today's Economy

In an ever-evolving financial landscape dominated by data-driven decision-making and economic uncertainty, understanding the nuances of fixed income investing is paramount.

At Candriam, we have developed a proprietary framework for assessing fair value using a Vector Error Correction Model (VECM) approach that integrates data analysis with expert economic insight. By capturing the nuances of factors such as economic growth, inflation and central bank policy, this framework provides actionable insights into the fair value pricing of sovereign debt and credit spreads.

 

Supporting Candriam’s portfolio managers

Through robust modeling techniques and a focus on both long-term trends and short-term dynamics, Candriam provides investors with a powerful tool for making informed investment decisions in a volatile market environment.

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Louis de Langalerie & Diquel Dos Santos
Fixed Income Quantitative Analyst
The model's success in predicting market movements during the volatile year of 2023 validates its contribution to Candriam's overall investment strategy

Want to dig deeper and see how effective our model is?

Download our white paper that introduces this data-driven approach.

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