Blackrock: Rate rise will not cause negative bond returns
An upward trend in interest rates does not automatically equate to negative bond returns, despite the commonly-held market belief that it does, Blackrock has argued.
An upward trend in interest rates does not automatically equate to negative bond returns, despite the commonly-held market belief that it does, Blackrock has argued.
Having hit a high of 9% in June, wealth managers cut their weighting in cash to 6.99% in the past three months in the Trustee MPI low-risk mandates.
Vanguard has launched a new offensive against competitors in the ongoing fund price war with the introduction of its first actively-managed bond fund in the UK.
High net worth individuals will be able to invest in a house building bond launched by Kevin McCloud, the creator and star of architecture programme Grand Designs, via Platform One but only through their financial advisers.
Investors’ love affair with bond funds shows no signs of abating, with recent statistics from FundsNetwork showing the Sterling Corporate Bond sector was the most purchased peer group in July.
Dutch-based Kempen Capital Management has launched a European high yield fund targeting returns from BB-rated debt in the junk bond market.
Emerging Market equity and bond funds ended their longest inflow streaks since 2013 during the second week of August as investors took some of their year-to-date gains off the table.
Improving economic conditions are likely to create pockets of value in parts of the global bond market, according to Morningstar.
Despite a murkier outlook for global inflation, there could be “positive surprises” ahead which make inflation-linked bonds an attractive diversifier, Fidelity International says.
One-stop shop funds that take away responsibility for asset allocation have been the blockbuster sellers with European investors in the last three years, but debt funds have also done well despite record low interest rates.
Two asset managers have warned that bond investors, particularly those in passive vehicles, are too exposed to duration risk without realising it.
Greece has returned to the bond market for the first time in three years after issuing its first five-year euro-denominated bond at a yield of around 4.75%.