Invesco's fixed income team warn of more bond shocks to come

Natalie Kenway
clock

Invesco Perpetual's fixed income team have said the sector faces "strong headwinds" for some time as summer volatility returns, and markets anticipate interest rate hikes.

The managers, speaking in a live web conference, warned rising interest rates will inevitably impact bonds while liquidity and the lack of quality new issuances in the market is also a challenge. Michael Matthews, co-manager of the £5.5bn Corporate Bond fund alongside co-heads of fixed income Paul Read and Paul Causer (pictured), said: "In January, we saw 10-year [UK] government bond yields at 1.3% and now they are over 2%. There is a quite a move in quite a short space of time and a 5% capital loss. "It is quite a strong headwind. Rates will go up and yields will go up. Those headwin...

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 Bonds

Join us today to discuss why 2024 is an attractive entry point for fixed income

Join us today to discuss why 2024 is an attractive entry point for fixed income

Sarka Halas
clock 25 March 2024 • 1 min read
Partner Insight: Moving from cash to corporate bonds ahead of cutting-cycles

Partner Insight: Moving from cash to corporate bonds ahead of cutting-cycles

Fidelity International

Ben Deane, Investment Director, Fixed Income - Fidelity International
clock 19 March 2024 • 13 min read
JP Morgan AM to wind up Sterling Bond fund as assets dwindle

JP Morgan AM to wind up Sterling Bond fund as assets dwindle

Fund size of £29m

clock 18 March 2024 • 1 min read
Trustpilot