Rathbones' Jones on life after the 'bond bonanza'

Outlook for fixed income

Bryn Jones (pictured), Rathbones' head of fixed income, says the goblins that kept investors up at night last year are still out there in 2017.

Since 2010, bonds have confounded many investors who shunned them as expensive, risky or dull versus other asset classes. Lacklustre global economic growth resulted in lower-than-expected inflation - a great environment for bonds. And when the major Western central banks flooded the market with quantitative easing, it became a bonanza.  Before the December US Federal Reserve meeting, consensus expectations were for two or three increases in US interest rates during 2017, gradually taking rates above 1% by the end of the year.  December's 25bps rate increase to 0-50-0.75% was expect...