Bonds: have we reached the bottom yet?

Worst half year since 1997

clock • 4 min read
Grace Le of Artemis
Image:

Grace Le of Artemis

Inviting investors to buy a fund focused mainly on investment-grade credit? For the past few years this has made me as welcome as someone coughing in a supermarket at the height of the pandemic.

With yields so low, it is not surprising. But perhaps that is changing. UK corporate bonds have had their worst half-year since at least 1997. The ICE BofA Sterling Corporate and Collateralized Index fell by 14.7% in the first six months of 2022. To put this into context, the previous record was a fall of 4.75% in the first half of 2008. The total return for that year was -8.58%, representing the worst full year on record. It may be of some comfort to know this was followed in 2009 by record performance of 15.18%.   Until this year, the index had never seen six months of consecu...

To continue reading this article...

Join Investment Week

  • 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

Oliver Dobbs, portfolio manager, Trium Credere fund

Three reasons why convertibles thrive when rates rise

Resilient during inflationary periods

Oliver Dobbs
clock 16 August 2022 • 4 min read
Four graphs explaining... fixed income

Four graphs explaining... fixed income

Four experts write

Investment Week
clock 08 August 2022 • 3 min read
Arthur Lau of PineBridge Investments

Asia Fixed Income: on a firm foundation

US interest rates little impact

Arthur Lau
clock 20 July 2022 • 3 min read
Trustpilot