Investors are facing rising yields in fixed income as economic growth in the UK and US accelerates and inflation concerns are priced into the market. But if investors are seeking resilience, then taking a longer-term view and staying the course with bonds still could make sense.
After all, notes Peter Becker, fixed income investment director at Capital Group, bonds have notched up gains following the five largest yield spikes over the past three decades.
We speak to Becker and discuss the importance of these figures and why they suggest fixed income could still play an important role in the broader portfolio context - even when yields remain low.
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