T. Rowe Price - Wed, 09/04/2024 - 21:52

Why passive flows and inelastic markets don’t mix

Key Insights

Deep-rooted issues with passive fixed income investing have caused bond market structure to deteriorate, raising the risk of elevated volatility.
Recent academic work hypothesizes that the market is significantly less elastic than previously believed.
While this inelasticity has helped inflows to passively managed funds drive prices up, a reversal of flows to passive products would have the opposite effect.

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T. Rowe Price

T. Rowe Price is a global asset management firm with broad investment capabilities across Equity, Fixed Income, Multi-Asset and Alternative Strategies, highly committed to excellence in service and putting client interests first. We understand that insurers have many unique considerations impacting portfolio design, and we are proud to work with many of the largest insurers in the world delivering diverse and custom solutions designed to meet those needs. Our dedicated insurance relationship managers act as an extension of your team and serve as a conduit to the T. Rowe Price organization while proactively bringing the firm’s vast resources to bear. We offer a consultative, problem-solving approach and the ability to implement solutions based on specific client objectives, constraints, and risk tolerance.

Ben Riley, Brian Rapino
Senior Relationship Managers, Insurance
benjamin.riley@troweprice.com
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brian.rapino@troweprice.com
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646-327-7050

www.troweprice.com/insurance
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