Finding Yield in a 2% World

Meb Faber

Cambria Investment Management

January 29, 2016

Many investors are surprised to learn that the largest asset class in the world is foreign debt. US investors often allocate very little to foreign bonds, and when they do, it is through capitalization weighted indexes. These indexes allocate the highest weighting to countries with the most debt outstanding. Is there a better way to invest in global bonds? We examine a simple value approach applied to global sovereign bonds and find that it works well across decades. In a world of very low and even negative yields, a value approach could potentially add a well needed source of income to a diversified portfolio.

Number of Pages in PDF File: 7

Keywords: bonds, stocks, etfs, value, global, sovereign, high yield, income, foreign bonds

Open PDF in Browser Download This Paper

Date posted: February 4, 2016  

Suggested Citation

Faber, Meb, Finding Yield in a 2% World (January 29, 2016). Available at SSRN: https://ssrn.com/abstract=2724737

Contact Information

Meb Faber (Contact Author)
Cambria Investment Management ( email )
2321 Rosecrans Ave
Suite 4270
El Segundo, CA 90245
United States
HOME PAGE: http://www.cambriainvestments.com
Feedback to SSRN

Paper statistics
Abstract Views: 10,451
Downloads: 6,734
Download Rank: 588