Kames CIO: 'This is not an Armageddon scenario for fixed income'

Investors urged not to panic ahead of rate hikes

Kames Capital's CIO Stephen Jones has urged investors to not fear an Armageddon-style scenario in fixed income, saying value still remains in the asset class.

While investors have started to move away from bonds after a multi-year bull run of falling yields and rising prices, Jones said they should not write it off completely. "Fixed income has had a much tougher year so far in 2015, with the worst quarter ever for European government bonds, and overall for the year you could see core government bonds globally fall by around 3.5%," the CIO said. "However, this is not an Armageddon scenario. There is still value in sectors such as investment grade and high yield, and indeed the average fund in both the Strategic Bond and High Yield sectors r...