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Why are investors coming back to fixed income? How long is this trend going to last considering that much depends on future policies adopted by central banks?
In our view, a major reason why investors are coming back to fixed income is that the ‘income’ is back into fixed income. The yield on the Euro investment grade bond index has gone up from around 0,5% at the beginning of this year to over 4% at the moment. (Source: Bloomberg as of 27th September 2022)
What are the most interesting segments in fixed income today? And for what kind of portfolios?
I believe Euro investment grade credit is one of the most interesting segments for multiple reasons. The yield is over 4% whereas the interest rate risk...
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