Why global bonds are looking a lot more expensive than equities

Fixed interest: valuations

This week's Conjecture looks at inflation in the US, Europe and UK and looks at the best strategies to counteract it

US interest rates could rise by as much as 2.0% in the next year as the Federal Reserve looks to remedy a potentially serious inflation problem. That was one of the views on the latest Conjecture on global and UK fixed income, expressed by AA-rated Cedric Morisseau of CAAM. The panel, consisting of Morisseau, Richard Woolnough of M&G and David Roberts of Aegon, also tackled such topics as the weakness of the US dollar, the outlook for the euro, default rates and whether R&SA's debt is worth buying. Inflation appears quite low, what is the outlook for 2005? Cedric Morisseau (CM): In the ...