Darius McDermott: Another perfect advert for strategic bonds

Short- or long-term inflation?

clock • 4 min read

The threat of inflation has arrived, writes Darius McDermott, who waves the flag for the diverse element of strategic bonds to counter it...

It was this time last year we were talking about the unique opportunities across the entire bond market, as the global economy recalibrated after the lockdown sell-off. Fast forward 12 months and we are back to a dearth of upside in what is widely considered to be a very expensive asset class. Bond-buying from central banks across the globe via quantitive easing will do that to a market (particularly at a rate never seen before) but the bottom line is that both the base rate and the spread are low. The best example of this is clearly government bonds - yielding almost nothing, I recently...

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