Bonds

THE BIQ QUESTION

The ‘great rotation' out of fixed income and into equities is pushing funds' assets towards maximum capacity, which could result in top-performing funds soft-closing in the coming months.

Germany's AAA credit rating will come under increasing scrutiny this year as investors shift their focus, according to Cosimo Marasciulo, head of government bonds and FX at Pioneer Investments.

PIMCO has made its global multi-sector bond strategy available to UK retail investors for the first time.

Liontrust's new Global Strategic Bond fund will avoid corporate bonds and favour emerging market government debt and currencies.

Fixed income remains popular with investors despite a very recent shift towards equities, but which bonds currently pose the greatest risk to investors?

ON BONDS

The SWIP Absolute Return Bond fund received a significant boost in Q4 from exposure to the European periphery, such as Italy and Spain.

Fixed income managers are turning more positive on bank debt after regulators announced they will allow banks to hold a broader range of corporate bonds as a capital buffer.

M&G's Mike Riddell has sold out of his position in 5- and 7-year Italian government bonds ahead of a possible sell-off following the country's general election.