Will new US interest rate regime make yields great again?

Credit as an asset class has historically delivered reliable returns across the cycle. Last year's returns in global credit were exceeding 6%, writes Vontobel's Christian Hantel.

As we begin the new year, the environment for credit remains positive, supported by higher coupon income and some further spread tightening.  One of the likely drivers for corporate bonds in 2017 will be the US, where the economy is expected to continue growing. After the Presidential Election we saw a sharp uptick in interest rates.  As a result, the markets are now pricing in almost three Fed rate hikes for 2017. The key question for fixed income investors is: will this new regime in the US make yields great again? Fed mulls faster rate hiking path on Trump's fiscal stimulus plan...