Peter Doherty: Bond investing in inflationary times

Consider hybrid capital

clock • 9 min read

Creeping inflation and ultra-low base rates have effectively repressed returns from many investors' portfolios but, argues Peter Doherty, a judiciously balanced bond portfolio is a potential solution

Investors have had a tough time of late. The search for investment's ‘Holy Grail' - a portfolio designed to return above-inflation rates while simultaneously protecting the investor's hard-earned capital - has taxed the best City investment manager minds for the past 12 months.  A perfect storm of creeping inflation, coupled with ultra-low base rates - a mechanism firmly maintained by the Bank of England's Monetary Policy Committee as a continuing firewall almost a decade on from the financial crisis - has effectively repressed returns from ‘ordinary' investors' portfolios. At times l...

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

Decoding the conflicting investment advice of Warren Buffett

Decoding the conflicting investment advice of Warren Buffett

'He leaves us with a wealth of opinion and information about markets and investing'

Laith Khalaf
clock 09 December 2025 • 5 min read
Private assets in wealth management: The time for talking is over

Private assets in wealth management: The time for talking is over

'The first barrier to adoption is accessibility through existing infrastructure'

Russell Andrews
clock 08 December 2025 • 4 min read
China: Beyond trade tensions and tariffs

China: Beyond trade tensions and tariffs

'So what do you think about China?'

Gabriel Sacks
clock 05 December 2025 • 4 min read