Andrew Morris: Can fixed income be defensive amid rising rates?

Fears of bond bear market

clock • 6 min read

As concern mounts among investors as to whether fixed income is still suitable as the defensive element of a multi-asset portfolio, Andrew Morris considers the evidence of the last 40 years

A very common question we have been receiving from advisers in recent months has focused on whether fixed income is still suitable as the ‘defensive ballast' of a multi-asset portfolio. Following nearly a decade of historically low interest rates, many now fear a bear market in fixed income. This is a huge issue for multi-asset managers, as funds designed for lower-risk investors have the vast majority of their portfolios invested in the asset class.  The catalyst for this belief has been the wide acknowledgement we are now entering a monetary tightening cycle. Following ten years of ...

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

When growth raises the cost of money

When growth raises the cost of money

‘Clients experience losses differently when they occur in assets held for stability’

Fahad Hassan
clock 27 October 2026 • 6 min read
Where can investors find value in a changing bond market?

Where can investors find value in a changing bond market?

'Bond markets have entered a more demanding phase'

Jeremy Ocansey
clock 07 October 2026 • 4 min read
Have gilts lost their role as portfolio diversifiers?

Have gilts lost their role as portfolio diversifiers?

Gilt volatility – the new normal?

Ari Towli
clock 10 July 2026 • 6 min read