SFI Master Classes

This SFI Master Class is offered in cooperation with the Zürcher Bankenverband (ZBV)

Current Situation

With recent shifts in central bank policies and the ongoing battle against inflation, fixed income investors are navigating a challenging environment. Although interest rates have risen, credit spreads remain unusually tight, reflecting strong demand for yield in a low-risk premium environment. This dynamic has resulted in lower compensation for credit risk and increased sensitivity to potential market shocks. Tighter liquidity further complicate portfolio management, making it difficult for investors to achieve an optimal balance between yield and risks.

In response, asset managers are turning to strategies that provide attractive yields while managing portfolio risks. Factor-based investing, long used in equities, is gaining traction in fixed income. By looking beyond traditional metrics like duration and credit rating, and incorporating factors such as value, quality, and momentum, investors can seek better diversification and improved risk-adjusted returns. However, the practical implementation of such strategies is complex, given the distinctive characteristics of fixed income markets, requiring a sophisticated and nuanced approach.

Objective

The Master Class provides the background to understand factor models with a focus on the fixed income asset class. It reviews the most relevant factors from an academic point of view and discusses theory and practice of factor-based investing. The topics discussed during the afternoon are:

•    Industry challenges that give rise to (more) innovative investment approaches
•    Theoretical foundation of fixed income factors
•    Discussion of some popular factor investing strategies in fixed income
•    Considerations on how to incorporate factor investing in portfolio management

The format will be a combination of inputs, discussions, and group problem solving.

SFI Master Class Features and Target Audience

SFI Master Classes offer seasoned banking and finance professionals a unique opportunity to exchange knowledge and share their professional views with top-level academics and industry experts in an interactive learning environment. Master Classes incorporate hands-on group work and opportunities for discussion. An on-site networking event will follow this Master Class.

The Master Class is aimed at professionals in the financial industry who work in Institutional Banking, Asset- and Wealth Management, and as well in Investment Banking.

SAQ Recertification

This SFI Master Class is an acknowledged SAQ recertification measure and comprises four learning hours for the following SAQ profile: 

• Wealth Management Advisor CWMA

This SFI Master Class covers the "industry knowledge" aspect.

Late cancellations and no-shows

If you have registered for a Master Class but are unable to attend, we kindly ask that you inform us as soon as possible. Places are limited, and late cancellations and no-shows not only prevent those on the waiting list from attending but also result in an inefficient allocation of valuable resources. Your cooperation in communicating any unexpected changes regarding your participation at this Master Class is greatly appreciated.