@article {Konstantinov1, author = {Gueorgui Konstantinov}, title = {Practical Applications of Currency Crowdedness Generated by Global Bond Funds}, volume = {5}, number = {2}, pages = {1--3}, year = {2017}, doi = {10.3905/pa.2017.5.2.234}, publisher = {Institutional Investor Journals Umbrella}, abstract = {{\textquotedblleft}There has been a great deal of research on factor investing in equities, but far less on the fixed income side,{\textquotedblright} says Gueorgui Konstantinov of LBBW Asset Management. In Currency Crowdedness Generated by Global Bond Funds , he works to rectify that gap, demonstrating that nearly half of the variance in global bond manager returns can be attributed to five currency factors. He also sends a clear practical message: many highly skilled bond managers are not good at active currency management, but rely heavily on these currency factor {\textquotedblleft}betas,{\textquotedblright} resulting in crowded trades and greater risk. {\textquotedblleft}Investors should keep a close eye on their managers{\textquoteright} style exposures,{\textquotedblright} cautions Konstantinov. He spoke with Institutional Investor Journals about his research and the original article was published in the Winter 2017 issue of The Journal of Portfolio Management .}, issn = {2329-0196}, URL = {https://pa.pm-research.com/content/5/2/1.3}, eprint = {https://pa.pm-research.com/content/5/2/1.3.full.pdf}, journal = {Practical Applications} }