Interest rate threat to sovereign bonds is overblown
Rising interest rates are generally accepted as a poor environment for sovereign bonds, says Rathbones’ head multi-asset investments David Coombs, but has the danger been oversold?
Rising interest rates are generally accepted as a poor environment for sovereign bonds, says Rathbones’ head multi-asset investments David Coombs, but has the danger been oversold?
Mike Riddell, manager of three M&G bond funds, has left the firm after 12 years.
While gilts may have surprised on the upside in 2014, any risk/reward trade off in the asset class is offset by volatility that’s currently higher than equities, according to iFunds Asset Management.
After months of grinding yield compression the pressure valve on the German sovereign bond market was released, with 10-year bund yields jumping almost ten-fold in the space of a few days.
Holders of short-duration gilts should be hoping a Conservative-led government emerges from the General Election, says Newton Investment Management’s Howard Cunningham.
Jason Broomer, head of investment at Square Mile Investment Consulting & Research, examines the ways in which investors can safeguard against periods of inflation.
Gilts still play an important role in a portfolio but it is a small one, argues FundCalibre’s Juliet Schooling-Latter, and most likely shouldn’t be played by a gilt-only fund.
In between the “yes” and “no” votes in Scotland, and the stick or twist spats within the MPC, are a whole lot of maybes; and we all know how markets respond to uncertainty.
The volatile mix of global divergence in monetary policy and some highly charged geopolitical hotspots should give fixed income fund managers plenty to think about over the coming weeks.
AXA Investment Managers is closing its £7.3m Sterling Gilt Fund as of 8 September.
Three products listed on the LSE offer investors exposure to the UK, US and Japan.
While there is an improving macro environment either side of the Atlantic, Nick Hayes explains why he thinks they are moving at different speeds for different reasons and where he is looking to allocate as a result.