Strategic Fixed Income: the turn of the global liquidity cycle
3 minute watch
Jenna Barnard, Co-Head of Strategic Fixed Income, explains how the team have viewed the bond markets through the prism of interest rate divergence for a number of years now.
Key points:
- There is a clear divergence in interest rate policies within the developed markets, with the US Federal Reserve standing alone from the pack.
- As a consequence of the monetary policy divergence, US dollar strength is driving a series of liquidity events.
- The Strategic Fixed Income Team see the pressures in the financial markets this year as linked, due to the ‘liquidity withdrawal environment’, and not idiosyncratic, as many believe.
- The uptick in inflation is, in their view, cyclical and not structural.
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.
Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
Marketing Communication.
3 minute watch