Profiting from ultra-low interest rates - US inflation-linked bonds

Ultra-low interest rates are not going away

clock • 4 min read

In the first of a short series from the Baring Multi-Asset Group on opportunities in the current ultra-low interest rate environment, Christopher Mahon (pictured) explains why US 'linkers' are looking increasingly attractive

Ultra-low interest rates are not going away. While this has been clear for some time for the European Central Bank and the Bank of Japan, since Brexit, the Bank of England has also joined the rate-cutting party. This group of central banks is not expected to raise interest rates for a very long time yet. But what about the US Federal Reserve? While rate cuts are not on the cards for the US, we believe the Fed also belongs to the ‘lower for longer' camp. At almost every opportunity, the Fed disregards its own dot-plot forecast and pushes back expectations of when the next rate rise will s...

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