Thoughts and bonds - a balancing act

30/01/2018



 

'Thoughts and bonds' provides a quarterly view and outlook for the fixed income markets from the Fundamental Fixed Income team, where they share their insights on potential investment risks and opportunities.

Summary points:

  • Cautious central banks should help sustain range-bound to modestly higher yields, even as they reverse accommodative monetary policy. However, a more aggressive than expected reversal could trigger an upward spike in volatility
  • Range-bound rates and low volatility should continue to drive demand for corporate credit. Still, valuations are expensive and drivers of significant spread tightening appear limited
  • We expect a lower return environment for corporate credit in 2018 and carry to drive returns. Given rich valuations and the asymmetric risk profile of credit investing, default avoidance will be critical

For the Q1 2018 issue please click on the link below.

 

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 is not a guide to future performance. 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.

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