Deep Dive: Governments' 'lack of financial discipline' could upset bonds' positive outlook

Positive outlook on the asset class

Eve Maddock-Jones
clock • 4 min read

Fixed income, and bonds in particular, are “set to deliver some of the best returns investors have seen for a long time”, according to Raymond Sagayam, CIO fixed income Pictet Asset Management.

 However, he emphasised that "persistent price pressures and a lack of financial discipline on the part of governments" must not get in the way. According to Sagayam: "Investors now have access to defensive and income-generating assets at inexpensive valuations not seen for many years," notwithstanding "these potential hazards". The fixed income asset class, as a whole, suffered a torrid year in 2022, with the classic equities diversifier falling in lockstep with the asset class. Allianz GI's Riddell: Looming credit meltdown risks creating corporate bond fund illiquidity shock N...

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