While many bond investors have felt the earth move under the feet this year as the asset class experienced the finale of a 50-year bull market, the denouement has not stripped them of opportunities, Arnaud-Guilhem Lamy, head of euro aggregate bond management strategies, tells chief market strategist Daniel Morris.
Listen to this Talking heads podcast on the unprecedented selloff in fixed income markets which pushed yields on bonds and money market instruments into positive territory. While the pace of central bank rate rises has been steep, peak hawkishness has come into view as growth concerns and the risk of recession take over from inflation-busting.
“Most of the rate hikes have been done,” Arnaud-Guilhem says as he highlights the appeal of low credit risk covered bonds, curve flattening strategies for non-German markets and attractively valued investment-grade corporate bonds.
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