CPD  

What next for bonds?

  • Explain the drivers of bond market returns in recent years
  • Describe how interest rate movements impact bond prices
  • Explain how monetary policy impacts the riskier part of bond markets
CPD
Approx.60min
What next for bonds?
(Ann H/Pexels)

Introduction

Bond investors have endured a volatile three years or so, the rally at the end of 2023 proving to be a rare bright spot in an otherwise turbulent market. 

But with continued uncertainty surrounding the direction of monetary policy, inflation and geo-politics, how can one construct a fixed income exposure that is diversified and capable of generating positive returns for clients?

This guide, which comes with 60 minutes of CPD, aims to answer this question and more. 

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. In section 4, what does Schroder's James Ringer say is no longer being priced in by bond markets?

  2. In section 4, what does Rathbones' Stuart Chilvers say makes government bonds an attractive investment right now?

  3. In section 3, which of the below is a reason for high-yield bonds performing well when interest rates are cut?

  4. In section 3, what is Walker Crips' Wesley Coultas's reason for being keen on short-duration bonds?

  5. In section one, how is duration defined?

  6. In section one, what does Columbia Threadneedle's Kelly Prior say is a priority when it comes to building a bond allocation?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain the drivers of bond market returns in recent years
  • Describe how interest rate movements impact bond prices
  • Explain how monetary policy impacts the riskier part of bond markets

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