JOHIM's Keen: Not all will escape the bond unwind pain

ON BONDS

JO Hambro Investment Management's Jeff Keen looks at the improving macro environment and warns not all bond investors will escape unharmed.

The events of last summer were game changing. The market tone has changed considerably leading to strong rallies in risk assets, but after such a long period of risk aversion, these trends may have much further to run yet.  Most importantly, Draghi’s “whatever it takes” mantra served to underwrite the peripheral euro government bond markets which, in turn, gave us greater confidence that bank balance sheets, full of government debt, were safe.  The degree of downside risk during the financial crisis caused long held relationships to be challenged. Why should investors accept a negativ...