Fidelity International

Fixed income markets are approaching an inflection point amid signs of easing inflation and expectations of lower rates. As the impact of tight monetary policy edges the domestic economy towards recession, UK fixed income portfolio managers Kris Atkinson and Shamil Pankhania discuss why high-quality credit looks increasingly attractive to cautious income seekers.

Adjustment to a new environment

Chantalle Pelletier and Emma Haight join

Today’s investors face a challenging prospect of an oncoming recession and elevated market volatility, which may lead them to question their risk appetite and asset allocation. Against this backdrop, Fidelity’s fixed income team highlight the reasons why now is a good time to be allocating to cash in your investment portfolio.

The yield curve is inverted which offers investors an exciting opportunity to increase yield by taking less interest rate and credit risk. With the UK set to enter recession, Fidelity fixed income managers Kris Atkinson and Shamil Pankhania discuss why a defensive income offering looks attractive via short dated, high-quality corporate bonds

To create £1.2bn investment trust

£184m in assets under management

Will remain CEO over transition period

This year’s flood of capital into cash investments after a decade of negative returns has been well documented. Our fixed income investment team examine the UK as a case study and discuss why they believe forward interest rates suggest cash could reign as king for a while.

Bar for further hikes is higher