M&G's Leaviss: How bond investors can play the oil price rebound

M&G's head of retail fixed interest Jim Leaviss has said it may be time to invest in US inflation protection following the oil-related sell-off seen in recent months.

UK inflation-linked government debt has produced strong returns in recent months in spite of plunging headline inflation rates, but it is US inflation protection which is attracting Leaviss' interest. Leaviss (pictured) said nearly 20% of his £1.3bn M&G Global Macro Bond fund is now invested in inflation-linked strategies, principally in US Treasury Inflation-Protected Securities (TIPS). "Inflation protection is very cheap now, so it may be worth adding some. We have been buying US TIPS, as they got destroyed by the collapse in the oil price," the manager said. "US inflation is ver...