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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


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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.

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