Short duration or long duration? That is the question. And the answer, for past few years, has been ‘long’. It’s worked a treat for some. Could things be about to change or is the raging 30-year plus bull market going to go on for longer?
Bond vigilantes could force the Fed into two rate hikes in the first half of next year, Societe Generale’s Albert Edwards has warned.
Inflation is set to head higher in the US after Donald Trump’s victory, putting inflation-linked assets in the spotlight.
Invesco Perpetual has shuffled its fixed income fund manager line-up.
The outcome of the US election has triggered a largescale sell-off of bonds and splurges on cyclicals, according to data from Bank of America Merrill Lynch.
Retail funds are still struggling to deliver consistent top-quartile returns but IA Corporate Bond is doing a better job than most, according to BMO Global Asset Management.
Bond investors are strapped in for an explosive month ahead as more questions were raised over the next Fed rate rise, following today’s US election result.
Lloyds Private Bank has reduced its exposure to United States bonds in favour of raising its United Kingdom and Japanese bonds allocations.
General risks for investors in emerging-market debt are ebbing, which is why global institutional investors are likely to continue to add exposure, said Michael Ganske, portfolio manager at Axa Investment Managers.
Duration may have been the main driver of portfolio growth in 2016 so far, says State Street Global Advisers, but the next leg may require investors to have a more pointed exposure.
Yields rose notably this week and investors will be considering whether to stick to their guns to avoid making a paper loss a real one, or get out before things slide further.
Saudi Arabia’s record debt sale last week showed that emerging market bonds remain in strong demand with yield-hungry investors. However, the question is whether appetite could reverse as quickly as it has in the past.
