Inflation is rampant and interest rates are rising, leading some to say there has not been a more interesting time for fixed income in years, but where is value to be found in bonds right now?
Inflation is hovering around the 10 per cent mark and is expected to stay high for some time before coming back down to the Bank of England’s 2 per cent target.
In response, interest rates have risen, and bond markets, which are sensitive to high inflation and rising rates, have fallen, and their yields have risen sharply.
At the time of recording the 10-year and 2-year UK government bonds had surpassed the 3 per cent mark and by the time of publication they were north of 4 per cent.
In this 40-minute CPD we chat to Lloyd Harris, head of fixed income at Premier Miton Investors, Ben Seager Scott, head of multi-asset funds at Evelyn Partners, and Fahad Hassan, chief investment officer at Albemarle Street Partners about where value is to be found in fixed income in turbulent times such as these.
To bank your CPD, answer the questions below after watching the video.
Please note, this video was recorded throughout September and ahead of the monetary policy committee’s interest rates decision on September 22, when rates were raised to 2.25 per cent.
carmen.reichman@ft.com
