Despite a sell-off of bonds in June, low inflation and interest rates and a healthy appetite from institutional investors bode well for the asset class's prospects in the medium term
One of the most obvious truisms of market analysis is that what goes up must come down. For the bond market, the bubble burst in June this year. Expectations of recovery overcame fears of deflation and bonds sold off. Since then, some observers have been quick to predict the demise of fixed income assets. However, We think this view is too precipitate as bonds should continue to draw support from low inflation and low short-term interest rates. In addition, corporate paper is likely to benefit from healthy institutional appetite and the prospect of a pick-up in global demand. Before ...
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