With interest rate rises on the horizon, bonds are unlikely to retain their traditional role of protecting capital in portfolios – meaning investors must take on greater risk both within fixed income and by raising allocations to other asset classes
Fixed Income

Inflation situation spooks European bond markets
Fears of a breakup in the eurozone have reduced since the ECB indicated it would do all it could to save the currency, and investors’ attention is now focused on low levels of inflation across the region

Radical change for factors shaping emerging market growth
Fears over falling growth rates and the end of QE have made investors wary of emerging markets, but these economies should receive a boost as the developed world recovers

High yield stands out in troubled times for bonds
Despite volatility over the summer, high yield bond funds continue to attract investors searching for yield in what is a difficult environment for fixed income in general
Absolute return a potential solution in challenging times
Absolute return fixed income funds tend to be unconstrained by benchmarks and therefore offer managers the flexibility to outperform, but investors need to be aware of the different strategies

Rout subsides to reveal opportunities in emerging market bonds
Emerging market bonds have always been volatile and the Fed’s comments about the end of QE saw large numbers of retail investors flee the asset class. But there is a sense the market overreacted and the sell off has created a buying opportunity

What does the future hold for fixed income?
As Fed chairman Bernanke set out the case for phasing out all quantitative easing by the middle of next year, what does this mean for the fixed income markets and the role of bonds in private investors’ portfolios?

Time to view bonds in a portfolio context
Fixed income can still play a vital role in client portfolios when combined with other asset classes, but to get the most out of bonds any exposure must be managed in an active manner

Appetite for corporate bonds remains despite low yields
In historical terms, corporate bond yields are at record lows, but with returns from cash and sovereign debt even lower the asset class continues to attract investors
Guiding investors through the global bond markets
The size and diversity of global fixed income markets can be confusing for investors, but when looking for managers they should seek those who combine top-down and bottom-up approaches in their funds
Join PWM's Yuri Bender for the annual announcement of our Global Private Banking Awards, plus a bonus discussion about the industry's future with Mercer's Cara Williams, Aite Group's Alois Pirker and independent wealth consultant Seb Dovey.
PWM Digital Edition (December 2020 - January 2021)
Join our community
|
|
|
|
|
