Rethinking Duration Management: Moving Beyond Traditional Bonds
July 8, 2026 | Public Markets, Thought Leadership
Over the past several years, we have engaged with institutional investors seeking to extend their fixed income asset duration to take advantage of higher long-term yields while protecting their asset-liability position.
These efforts have generally focused on reallocating from universe bonds to long bonds or to strategies somewhere in between.
A common starting point for investors seeking long duration bond exposure is a mandate designed to deliver benchmark-like performance relative to the Canadian bond market or a custom subset. This typically includes the following approaches:
- Long bonds (e.g. efficient exposure to FTSE Long-Term Bond Index)
- Custom long bonds (e.g. blend of long-term provincial and long-term corporate bonds)
- Custom liability-matching portfolio (e.g. 50% provincial and 50% corporate bond mix with a term structure matching the liability profile)
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