Fixed Income

In the decade following the Great Recession, central banks in developed countries have resorted overwhelmingly to unconventional measures to satisfy their mandates, be they dual (price stability and full employment) or solely focused on price stability...

According to Mohit kumar, Global Head of Rates Strategy, Crédit Agricole CIB, thus a rate sell-off from current levels becomes self-defeating. If rates sell-off further, it would trigger a sell-off in risky assets which would in-turn create a bid for fixed income.

Do investors realize how good they’ve had it over the last 8+ years ? On the obvious side, the length and strength of the equity bull market has been well publicized. Since the March ’09 bottom, US equities are up over 300% (S&P 500®) while global equities are up over 200% (MSCI World).

According to Arnaud Faller, Deputy Managing Director, Chief Investment Officer at CPR AM, in this environment, we shall clearly favour equities over credit investments in developed markets, while leveraging on current opportunities in emerging bond and equity markets.

As June’s Federal Open Market Committee (FOMC) meeting approaches in the US, Andrea Iannelli, Fixed Income Investment Director at Fidelity International, outlines why US duration offers welcome protection for investors.