|
By Beatriz RANEA, a fixed income manager at MAPFRE AM, which is part of MAPFRE
Fixed income experienced one of its worst years in history last year. How is 2023 shaping up?
Indeed, in 2022, central banks’ actions to control inflation led to sharp rises in interest rates. On the flip side, this also enabled fixed income to reclaim its traditional function in diversifying portfolios, yielding returns that are once more in competition with equities, following a decade of exceptionally loose monetary policies and “zero” or negative interest rates. This year, alongside the inevitable volatility, the prevailing question has been whether inflation has reached its highest point, and consequently, whether interest rates will continue...
|