Deep Dive: Active fixed income managers set to seize 'attractive' bond yields

Passive investing unlikely to win

Valeria Martinez
clock • 5 min read

Fixed income is experiencing its worst year in a generation, with the global government bond market at the epicentre of the sell-off.

As opportunities begin to slowly creep up, investors tell Investment Week how they are approaching the asset class. Inflation is now running at multi-year highs, meaning the three decade long run of "reliable" downside protection and "consistently high" returns, as described by Secor Asset Management portfolio manager Florence Fong-Lopez, has been brought to a halt in the past 12 months.  Stephanie Butcher, chief investment officer at Invesco, explained that the direction of inflation is the key economic variable the firm's fixed income teams are trying to predict.  "This is for th...

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

Deep Dive: Multi-asset managers split on benefits of US Treasuries

Deep Dive: Multi-asset managers split on benefits of US Treasuries

Some opting for 'better' European options

Eve Maddock-Jones
clock 12 April 2024 • 4 min read
Pictet AM nears peak AT1 bonds allocation as banks recover from 2023 crisis

Pictet AM nears peak AT1 bonds allocation as banks recover from 2023 crisis

'Everybody hated the asset class'

Eve Maddock-Jones
clock 12 April 2024 • 3 min read
Federated Hermes' Fraser Lundie: Honey, I shrunk the credit market

Federated Hermes' Fraser Lundie: Honey, I shrunk the credit market

Valuation and uncertainty struggle

Fraser Lundie
clock 09 April 2024 • 4 min read
Trustpilot