The Case for Investing in Durable Income

14 Pages Posted: 8 Sep 2013 Last revised: 31 Jan 2014

Date Written: September 4, 2013

Abstract

Investing passively in traditional fixed income exposes investors to low expected returns, has little scope for capital appreciation, comes with significant interest rate risk, forsakes opportunities in unlocking an illiquidity premium, as well as excludes niches in credit investing. Durable Income, unlike fixed income is more resilient to economic downturns, to changes in credit and market risk, for it has its foundation in multiple return drivers. This paper discusses Durable Income from an alternative investments perspective. It points out essential differences between Durable Income and fixed income alternatives, outlines the investing case and explores its potential role in investment portfolios.

Keywords: Fixed Income, Alternative Assets, Retirement, Savings

JEL Classification: G2

Suggested Citation

Jain, Sameer, The Case for Investing in Durable Income (September 4, 2013). Available at SSRN: https://ssrn.com/abstract=2320734 or http://dx.doi.org/10.2139/ssrn.2320734

Sameer Jain (Contact Author)

Active Allocator Inc. ( email )

NJ 07310
United States

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