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Thoughts and visions by Peter De Coensel, CIO Fixed Income, Degroof Petercam
I started working in financial markets exactly twenty-five years ago as a market maker in Belgian government bonds. At that time, the reference 10 year Bund stood at 8.30% and 10 year US Treasuries at 7.50%. Bond investing has been very rewarding over such a long period. Between 1995 and today European Government Bonds returned 5.55% annually.
LOOKING BACK
In the next paragraphs we will zoom in on this prosperous period for fixed income. We will describe the conditions that allowed for healthy bond returns as well as the extent to which these conditions have changed in markets today? We also weigh overall future success factors of unconstrained bond...
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