The end of the bull market in bonds is nigh; the next phase will be interesting

Conventional bond funds will struggle to replicate returns seen in the past

It is fair to assume we will see one move by the Federal Reserve before the end of the year. It is at this point markets will have to reassess their view of the future and prepare for further hikes in 2016.

This could signal the end of the greatest bull market in bonds the world has ever seen. The next phase will be interesting. Given the reasonably robust growth picture in the UK and the tightening labour market conditions, a move in rates by the MPC will not be far behind the US move. Bank of England governor Mark Carney has already been speaking to the largest fund management houses about how prepared they are for a mass sell-off that could follow an interest rate rise. Conventional corporate bond funds will struggle to replicate the return profile they have delivered over the last...