Pictet's Mawby: Spike in bond market volatility 'isn't going away'

'Severe bouts of volatility'

Lauren Mason
clock • 3 min read

The sharp spike in bond market volatility has been “30 years in the making” and “isn’t going away”, according to Pictet’s Jon Mawby, who warned that fixed income investors will need to adopt a different approach to buying into the asset class.

Head of investment grade credit Mawby(pictured) said that the widespread surge in inflation has called time on an era of unconventional monetary policy, which has created "a period of ever-intensifying financial repression" as central banks purposefully held interest rates below inflation levels. "When, in 2006, then-UK Chancellor Gordon Brown claimed to have ended economic ‘boom and bust', he was right - to a point," he reasoned. "But the side effect of smoothing these cycles through highly interventionist policies was periodic and severe bouts of volatility. "These have included the...

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 Investment

Advisers say 'cash returns don't cut it' as equity exposure soars

Advisers say 'cash returns don't cut it' as equity exposure soars

Three quarters of advisers have helped clients increase equities exposure

Hope Coumbe
clock 14 June 2024 • 1 min read
Goal progression: What matters most to younger investors

Goal progression: What matters most to younger investors

Many advisers are trying to win over and retain more younger clients

Gordon Titman
clock 13 June 2024 • 4 min read
Darius McDermott: What will be the catalyst for real assets?

Darius McDermott: What will be the catalyst for real assets?

Real assets are providing increasingly important in the AI boom

Darius McDermott
clock 07 June 2024 • 4 min read