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By Amanda Stitt, Investment Director, Legg Mason
Some investors wrote off fixed income after the U.S. Federal Reserve said last year that it would start withdrawing its multi-billion U.S. dollar monetary stimulus. Investors read it as a sign that interest rates would rise sooner rather than later, causing a sell-off in the asset class. But more than one year later, rates in developed markets are still at record lows and certain areas in fixed income have produced attractive returns.
Jumping the gun
The simple truth is, the first half of 2014 has been a great period for high quality, long duration bonds and higher yielding credits as the reflation trade continued and rates remained anchored. While many...
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