In this month’s ‘Four graphs explaining’ our experts consider fixed income.
Global high yield and investment grade yields
Oliver Faizallah, head of fixed income research at Charles Stanley
2022 was one of the worst years on record for fixed income, however as the asset class has repriced, yields look at their most attractive in decades, and investors can once again take advantage of the multi-faceted nature of fixed income, increasing portfolio returns while lowering risk. Corporate balance sheets are strong, with issuers being well-capitalised after having spent their last two years refinancing their debt. We have an optimistic view of both investment grade and high yield corporate credit, however we prefer up-in-quality, and remain selective on names, as we are mindful the world is edging towards a recession.
