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

  • 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.



Already a Professional Adviser member?


More on Investment

Image: The latest market news and analysis

Market Movers: UK producer price inflation falls as inflation eases

Producer price inflation fell to its lowest rate since March last month

Investment Week
clock 26 January 2023 • 1 min read
2023 looks to be a defining point for the industry

Asset managers prepare for staff reductions in challenging 2023

Compressed growth predicted with streamlined product offerings

Kathleen Gallagher
clock 25 January 2023 • 6 min read
Meet the panel for Sustainable Investment

Meet the expert panel sharing their perspectives on

Connecting the sustainable investment community

clock 24 January 2023 • 3 min read