Economic cycle turning away from fixed income

With US interest rates rising and the prospect of higher inflation to come, the economy is moving in...

With US interest rates rising and the prospect of higher inflation to come, the economy is moving in an unhelpful direction for fixed income investors, according to Marino Valemsise, head of fixed income at Baring Asset Management. He says bond markets are in a similar place to where they were in 1994, when short-term interest rates in the US had been kept at 3% for some time, there was little sign of inflation, the economy was growing and the US had a record trade deficit. He notes when the Federal Reserve first raised rates by 0.25% and then a further 2.75% over the next year, the impac...