Fixed income back in fashion
Posted on September 28th, 2023
In this Investment Insight, Daniel Loughney, Senior Fixed Income Portfolio Manager discusses the resurgence of the fixed income asset class in the current economy.
The article, which first appeared in Portfolio Institutional where it can be read in full, tracks the recent journey of such assets, including bonds and gilts, as the low yield environment changed in response to pandemic monetary stimulus and the 2022 mini Budget LDI crisis. Daniel suggests they now compete as an alternative investment to traditionally higher yielding riskier assets from a return perspective, as opposed to just portfolio diversification.
While the economic landscape is subject to change, as a long-term investor, we believe bonds, including those that are inflation linked, currently provide ‘a two birds with one stone’ opportunity; generating attractive income and also helping to match a portion of liabilities.