Bond liquidity tops fixed income managers' list of concerns

100% of respondents think Brexit will not happen

Daniel Flynn
clock • 2 min read

Nearly 50% of fixed income fund managers said the lack of corporate bond liquidity is the biggest threat to their sector, according to the latest Aviva Investors multi-manager survey.

The results follow widespread fears throughout the second half of 2015 that bond liquidity will dry up as the US and potentially the UK hike interest rates, alongside tighter banking regulations. Out of the managers surveyed, who manage more than £2trn of fixed income assets, 15% also highlighted the withdrawal of quantitative easing and low absolute yields as further risks to the corporate bond market. Ten questions to ask bond managers about falling liquidity Two thirds of the managers surveyed expected returns from corporate bonds of zero to 3%, while 15% expected negative retur...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Partner Insight: Moving from cash to corporate bonds ahead of cutting-cycles

Partner Insight: Moving from cash to corporate bonds ahead of cutting-cycles

Fidelity International

Ben Deane, Investment Director, Fixed Income - Fidelity International
clock 19 March 2024 • 13 min read
JP Morgan AM to wind up Sterling Bond fund as assets dwindle

JP Morgan AM to wind up Sterling Bond fund as assets dwindle

Fund size of £29m

clock 18 March 2024 • 1 min read
JP Morgan AM's Iain Stealey: Debt maturity wall is not to be feared

JP Morgan AM's Iain Stealey: Debt maturity wall is not to be feared

Surge in corporate bond issuance

Valeria Martinez
clock 15 March 2024 • 2 min read
Trustpilot