Kames' Milburn: Still no sign of the 'great rotation'

ON BONDS

Kames's Phil Milburn on the outlook for global bond markets and the myth of the 'great rotation'.

Global bonds performed better than many expected in the first quarter of 2013, which has added to the debate about the much-hyped ‘great rotation’ away from fixed income towards equities. So far we have seen little evidence that a significant move between these asset classes is underway. Demand within the corporate bond sector continues to outstrip supply and we expect this to continue in the short to medium term. However, the outlook for bond markets overall is certainly more challenging than it has been for some time. Despite the ongoing weakness in the UK economy (GDP growth for 20...