Fixed income sector defensive but better value than for last 18 months

This week's debate examines the fortunes of the fixed income markets against a reasonably benign economy

This week's Conjecture focuses on fixed income. Taking part in the debate were Colin Harte from Baring Asset Management and Philippe Jauer from Credit Agricole. Hosting the debate was James Tew, head of client services, Standard & Poor's. The Fed has kept interest rates at 5.25%, indicating benign economic conditions. How have we got to this rather nice position in the economy? Colin Harte (CH): Part of the reason is that certain supply-side changes from the 1980s and 1990s have continued in terms of China and India entering the market. That made tradable goods quite cheap. At the same t...