Investors that traditionally relied on fixed income for diversification were left bruised in Q1 as government bonds buckled under volatility. Is this a sign fixed income assets are no longer useful in a diversified portfolio?
High-yield bonds were particularly affected during the March sell-off, and the asset class is still trading at attractive valuations. At a time when listed companies are cutting dividends, we believe that high yield’s income-generating qualities means that it has the potential to deliver superior risk-adjusted returns earlier on in the market’s recovery.
Fidelity Asia Fund portfolio manager Teera Chanpongsang reflects on the recent volatility in regional equity markets and outlines the benefits of maintaining a longer-term perspective in the current environment
Partner Insight: RWC's Fenton: 'Traditional means of diversification let investors down in Q1… we didn't'
Credit cycles patterns have the ability to provide signals as to when to take or reduce risks. Yet many fund managers failed to spot the end of the credit cycle was nigh in 2020
As we move through the different phases of the Covid-19 crisis and recovery, continuously evolving market dislocations will present challenges and opportunities. Fidelity Global CIO Andrew McCaffery and Anna Stupnytska, Head of Global Macro, discuss why investors should allocate capital that is sensitive to recovery rates, as well as identifying some key themes that will shape returns over a longer-term horizon
Credit fundamentals have worsened since the market sell-off began, although central banks could provide some companies with a soft landing and many firms have drawn on their credit lines in a bid to stay afloat. In our latest edition of 360°, we discuss the uptick in defaults and downgrades and consider what this means for fixed-income markets.
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