Three yield opportunities in fixed income

Yield and credit curves flat in several markets

As traditional markets finally begin offering some yield for investors, Neuberger Berman's Ashok Bhatia looks at three key areas to find new yield opportunities in fixed income.

Three themes dominated the discussion when our fixed income teams gathered for their latest quarterly outlook meeting. The first was the flatness of yield and credit curves in several markets and its implications for short-duration bonds. The second was the related value opportunity in hard currency emerging markets debt. And the third was the forthcoming policy adjustments from the European Central Bank. It was an energising conversation. There is the prospect of volatility in some core European bond markets that have been millpond-still for a long time and, most importantly, there i...