Talk about following the herd. today nearly all global bond portfolios use issuance-weighted indexes as benchmarks. Big, developed bond markets like the U.S., Europe and Japan dominate such indexes. As these cash-strapped countries and regions keep churning out debt, investors buy more of their bonds. To a small but growing number of money managers, that's asking for trouble. "No bank would make lending decisions that target the most indebted people," says Jamie Stuttard, who oversees $600 million as head of international bond portfolio management for Fidelity Investments in London.
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