In this report, BNY Mellon looks at the challenges and opportunities for investors and managers, focusing in particular on the operational requirements that underpin successful business models.

How our multi-asset investment process seeks effective diversification by diversifying risk across several low correlated strategies.

■ Yield curve changes are being driven by unconventional policies and technical factors, which make the moves harder to interpret.
■ Curve flattening in 2016 has resulted from changes to money market rules at the short end and central bank purchases at the long end.
■ Banks, municipalities and other borrowers are beginning to feel the pinch from rising Libor rates.
■ Fundamentals remain the most important consideration for bond investors and the most valuable guide for pursuing medium- to longer-term goals.