Unravelling the fixed income conundrum

FIXED INCOME

Laura Miller
clock

As speculation on the future of fixed income continues, Laura Miller explains what is really going on in the bond market.

A trio of factors - low rates, inflation and a gradually recovering economy - create challenges for fixed income investors, and their advisers. Today, interest rates remain near their 60-year lows. Since reaching an all-time high in 1981, ten-year Treasury yields have declined markedly and real yields (yields after inflation) on many fixed income investments remain close to zero. Architas senior investment manager Sheldon MacDonald believes these forces are both increasing risks and creating opportunities in fixed income. "The more positive macroeconomic climate of late has created...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Fixed Income

Partner Insight: Vanguard's Fixed Income Update - Yields decline on dovish Fed rhetoric in November

Partner Insight: Vanguard's Fixed Income Update - Yields decline on dovish Fed rhetoric in November

The key themes in global bond markets over the past month.

Kunal Mehta, Head of Fixed Income Specialist Team, Vanguard, Europe and Suparna Sampath, Fixed Income Product Specialist, Vanguard, Europe
clock 01 February 2024 • 8 min read
Bond market: Forget the crystal ball and focus on the easy win

Bond market: Forget the crystal ball and focus on the easy win

Fixed income offers more value now than at any time in the last decade

Darius McDermott
clock 28 November 2023 • 5 min read
Why it pays to be nimble in the fixed interest market

Why it pays to be nimble in the fixed interest market

Agility and active management needed when 'the chips are down'

Jerry Wharton
clock 21 September 2023 • 4 min read