By Laurence Mutkin, head of fixed income strategy at Threadneedle Although UK investors are show...
By Laurence Mutkin, head of fixed income strategy at Threadneedle Although UK investors are showing rising enthusiasm for increasing their holdings of fixed interest versus other assets, the level of nominal bond yields is now around 5%, which is very low by historical standards. Of course, we all know the nominal level of bond yields ' the sticker price, so to speak ' is not really as important an indicator of value as the inflation-adjusted, or real, yield. A nominal yield of 5% with inflation below 2% should be more attractive to investors than, say, a nominal yield of 13% with ...
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