Everyone's talking about... Bonds

...bonds. With yields nearing negative territory, are bonds 'uninvestable'?

Laura Miller
clock

In the fourth part of our series looking at the most topical investment themes for the quarter ahead, Professional Adviser asks multi-managers: with yields nearing negative territory, are bonds 'uninvestable'?

Bond yields  - especially on sovereign debt - are low and getting lower, as investors seek safety amid falling oil prices and deflation fears. Germany's 10 year bonds went on sale on 14 Janaury with a coupon of 0.5%, the lowest ever for a euro-area 10 year security. Gilts dropped to below 1% after UK inflation fell to a 15-year low. If yields fall so far they turn negative, investors buying the securities will get less back when the debt matures than what they paid. Multi-managers - who look across the whole investment universe - give their view on whether the asset still merits a ...

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

PA360: 'Diversified approach has room for both active and passive' - David Coombs

PA360: 'Diversified approach has room for both active and passive' - David Coombs

‘Volatility is your friend if you are a long-term investor’

Jenna Brown
clock 01 May 2025 • 2 min read
PA360: FOMO can 'significantly' alter investors' risk appetite

PA360: FOMO can 'significantly' alter investors' risk appetite

Albemarle Street Partners’ Charlie Parker on the social element of investing

Isabel Baxter
clock 01 May 2025 • 1 min read
PA360: Investors must understand importance of 'proper diversification'

PA360: Investors must understand importance of 'proper diversification'

‘Investors don’t have to choose a single door’

Sahar Nazir
clock 01 May 2025 • 1 min read