Great article, you make a strong case that as rates approach zero, bonds may not provide an effective equity hedge going forward. I agree with the conclusion that "we have to rethink portfolio management and risk control." However, filling the fixed-income void with catastrophe bonds or private loans potentially adds risk and reduces liquidity to the safer side of the 60/40 equation.
To fill this void, Innovator created ETFs which provide downside buffers to multiple equity markets, and soon fixed-income. They are similar to structured notes but without credit risk, while offered through the low-cost and liquid ETF wrapper. We believe our ETFs solve for the fixed-income conundrum investors face today.