Anmol Sinha of Capital Group - The Fixed Income Market and ETFs

Today on the podcast, Rusty and Robyn are joined by Anmol Sinha, a Fixed Income Investment Director at Capital Group, home of American Funds. He has 15 years of investment industry experience and has been with Capital Group for one year. Prior to joining Capital, Anmol worked as an EVP - fixed income strategist at PIMCO. Before that, he was a consultant at NERA Economic Consulting and also worked on a capital markets team at Citi. He holds an MBA from Columbia Business School, a master's degree in economics from New York University and a bachelor's degree in economics from University of California, Berkeley. Anmol is based in Los Angeles.Key Takeaways[03:31] - Anmol’s professional background and what led him to his current role at Capital Group.[05:22] - Learn more about Capital Group’s history, investing ethos and the work that Anmol does there.[10:05] - What are the key drivers behind the resilience of the US economy and does Anmol see this trend continuing into 2025?[14:06] - How should investors be thinking about how to deal with policy changes and political turbulence when it comes to their portfolios?[16:54] - How is policy volatility impacting the Capital Group’s research efforts to make investment decisions?[18:36] - Does Anmol think that the market is correctly pricing in future rate moves?[22:01] - How is Capital Group thinking about its overall exposure to longer-term bonds?[24:27] - Spreads tightened even as yields rose recently for Corporate Bonds. What does this tell us about Corporate Credit fundamentals?[27:21] - Is Anmol concerned about all of the potential issuance within high-yield in 2025?[29:21] - Are there other Fixed Income sectors we should be paying attention to or avoiding?[32:35] - What benefits do active strategies bring to Fixed Income ETFs?[36:31] - What are Capital Group’s “Three T’s” framework for the benefits of Fixed Income ETFs?[40:56] - How does the Capital Group’s “Capital System” lead to better outcomes for Fixed Income ETFs?[44:05] - How should investors think about using the Capital Group’s Fixed Income ETFs within their broader portfolio strategy?[47:50] - How should investors weigh the tax-exempt income potential of Municipal Bonds vs. other Fixed Income options?[49:31] - What role should International Fixed Income play in a diversified portfolio?[51:33] - What is currently Anmol’s favorite investment idea?Quotes[15:27] - “You could argue that [historically] markets have taken their direction a lot from monetary policy. What is the Fed likely to do, what are they telling you about growth implications and their policy, and then you imply your own growth and inflation expectations. Now you could argue, fiscal policy is going to be a bigger driver. Some of our portfolio managers have been talking about this trend. That is not an environment investors have been used to.”  ~ Anmol Sinha[33:12] - “[In Fixed Income] you have a lot of players that are inherently not economically driven…Think central banks, commercial banks, even insurance companies. They buy bonds for reasons other than maximizing their return…They have reserves, they have regulatory requirements…all sorts of things that drive behavior in the market, that isn’t necessarily maximizing a return. What percent of the market are they? The estimates vary, but they could be…40-50% of the market, and the Fixed Income market is something like 120 Trillion…So, when you think about a good chunk of players in this market playing by different rules, it creates inefficiencies. So, structurally, active managers can take advantage of that.”  ~ Anmol SinhaLinksAnmol Sinha on LinkedIn“Beautiful Day” by U2“It Don’t Get Better Than This” by Royal DeluxeCapital GroupConnect with UsMeet Rusty Vanneman, Orion’s Chief Investment OfficerCheck Out All of Orion’s PodcastsPower Your Growth with OrionDisclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.Advertisement sponsored by [Toews Asset Management]. [Toews Asset Management] and Orion Advisor Solutions, Inc. (“Orion”) are not affiliated companies, and the advertisement is not a recommendation or endorsement by Orion for any of the services referenced or provided. Orion does not endorse any particular third-party product or service.Compliance Code: 0528-R-25055