null

Partner Insight: Vanguard Active fixed income perspectives Q4 - Bond markets soften

Vanguard’s experts provide their latest sector-by-sector analysis of global fixed income markets and a summary of how these trends affect Vanguard’s active bond funds.

clock • 3 min read
Partner Insight: Vanguard Active fixed income perspectives Q4 - Bond markets soften

In their latest update, Vanguard's experts, Kunal Mehta, Roger Roger Hallam and Christopher W. Alwine provide their latest sector-by-sector analysis of global fixed income markets and a summary of how these trends affect Vanguard's active bond funds.

Key highlights include:

  • Bond markets sold off in the third quarter, as the market began to embrace the ‘higher-for-longer' narrative around interest rates.
  • In rates markets, much of the activity has been further out on the yield curve, where yields rose significantly, and continued to rise at the start of October.  
  • Looking ahead, we believe high-quality, investment-grade corporates look the most attractive credit option and are best equipped to weather an economic slowdown.  

 

Our active bond funds managed in-house

Emerging Markets Bond Fund

Global Credit Bond Fund

 

Fixed income at Vanguard

A longer-term perspective. Find out more about fixed income at Vanguard


Investment risk information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Past performance is not a reliable indicator of future results.

Any projections should be regarded as hypothetical in nature and do not reflect or guarantee future results.

Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.

Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.

Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.

Important information

For professional investors only (as defined under the MiFID II Directive) investing for their own account (including management companies (fund of funds) and professional clients investing on behalf of their discretionary clients). In Switzerland for professional investors only. Not to be distributed to the public.

The information contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this document does not constitute legal, tax, or investment advice. You must not, therefore, rely on the content of this document when making any investment decisions.

The information contained in this document is for educational purposes only and is not a recommendation or solicitation to buy or sell investments.

Issued in EEA by Vanguard Group (Ireland) Limited which is regulated in Ireland by the Central Bank of Ireland.
Issued in Switzerland by Vanguard Investments Switzerland GmbH.
Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority.

© 2023 Vanguard Group (Ireland) Limited. All rights reserved.
© 2023 Vanguard Investments Switzerland GmbH. All rights reserved.
© 2023 Vanguard Asset Management, Limited. All rights reserved.

More on Investment

Stories of the Week: abrdn drops 'sustainable' term; Fed has 'growing confidence'; Dynamic Planner drops property

Stories of the Week: abrdn drops 'sustainable' term; Fed has 'growing confidence'; Dynamic Planner drops property

abrdn; Fed; Dynamic Planner: The biggest stories from the world of investment and asset management this week

Sarka Halas
clock 04 October 2024 • 1 min read
James Anderson: First $10trn company will come from AI space

James Anderson: First $10trn company will come from AI space

Laments issues with industry attitudes

Eve Maddock-Jones
clock 03 October 2024 • 4 min read
Equity fund flows turn negative as investors shun UK

Equity fund flows turn negative as investors shun UK

Calastone Fund Flow index

Beth Brearley
clock 03 October 2024 • 2 min read
Trustpilot