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Explosive Insights into Passive Investing by Robin Wigglesworth

Lead-Lag Live

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The Importance of Indexation in Bonds

I've always found the entire dynamic of passive investing in bonds to be utterly insane. You're basically rewarding the debt issuer who has the most leverage with more that they can lever off of. And I think cap weighting, if you're going to measure the bond market, that's not terribly wrong. So is passive like henously dumb in fixed income? I think it's a little bit dumb, but in the end the outcomes are still kind of better than if you threw a dart at the table of active bond fund managers.

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