Fresh eurozone debt rally stumps fixed income bears

Natalie Kenway
clock • 3 min read

Quantitative easing in the eurozone and inelastic demand from institutions have been blamed for the latest bond market rally to catch out some investors.

The start of 2015 has seen another sharp drop in European sovereign and corporate bond yields, as investors flock to the asset class despite valuations viewed as unattractive by most retail buyers. Data provider EPFR Global reported the highest inflows on record for global bond funds in the week to 7 February, while European high yield issuance in January hit a post-crisis record of $16bn, according to Moody's. Meanwhile the European Central Bank's quantitative easing programme, which began today (9 March), has prompted the unprecedented sight of sovereign and even corporate bonds tra...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Partner Content: Is the interest rate descent the time to harvest bonds?

Partner Content: Is the interest rate descent the time to harvest bonds?

Markets expect interest rates to fall this year, offering investors the strongest opportunity for fixed income seen for a long time. Watch this video podcast to learn how best to harvest this exciting opportunity.

Sarka Halas
clock 28 March 2024 • 1 min read
Partner Insight: How effective are impact investments?

Partner Insight: How effective are impact investments?

Impact investing has transformed over the past decade, giving investors the opportunity to pursue both financial returns and social and environmental outcomes.

Sarka Halas
clock 27 March 2024 • 2 min read
Partner Insight: High-yield investors should keep a close eye on the default cycle

Partner Insight: High-yield investors should keep a close eye on the default cycle

As central banks start to think about cutting interest rates, forecasts for a peak in credit default rates are not far behind — and could happen sooner than expected, says Wellington Management’s Alex King.

Sarka Halas
clock 27 March 2024 • 2 min read
Trustpilot