Interest rate hikes cool economy and provide opportunities in bonds

UK Markets forum

UK bonds are providing fixed income managers with the best opportunities for future returns, accordi...

UK bonds are providing fixed income managers with the best opportunities for future returns, according to BlackRock Merrill Lynch's Daniel McKernan. McKernan, who manages the £107m ML High Income Bond fund, said recent interest rate hikes are beginning to take some of the heat out of the economy and are providing more investment opportunities for bond investors. "Should the marketplace begin to price rates going beyond 6%, it may offer an opportunity to move overweight into UK bonds, which remain supported by the surge in pension fund demand," he said. "As prices reached new lows, we too...