Managers who feared lower rates for longer shine, while optimists lose out following months of turmoil in global markets
Prior to the recent market rout, investors were rewarding the higher yielding parts of the bond market on optimism over economic growth. The summer months have seen a complete volte-face on the back of weaker economic data globally, especially from the US, and the £ Corporate Bond sector has been a notable beneficiary. However, those managers overweight in sensitive financials have been hit hard. A number now believe markets may have hit an inflection point and the valuations of financials are now attractive but, as in other fixed income sectors, managers are holding cash in the hope of ...
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