60 seconds on why bond volatility brings opportunity

In our latest 60 second video, Schroders Head of US Multi-Sector Fixed Income, Andy Chorlton, explains the two counteracting forces which will bring volatility - and opportunity - to US bond markets.


Andrew Chorlton

Andrew Chorlton

Head of US Multi-Sector Fixed Income

Diverging monetary policy

The rest of 2015 could an exciting time in the bond market.

We have two contrasting features which will influence what happens:

1. The amount of liquidity that continues to be pumped into the financial system by central banks around the world. For example, the European Central Bank has launched a trillion dollar quantitative easing programme.

2. The Federal Reserve (Fed) is expected to raise interest rates by the end of this year. The market fully expects the Fed to raise rates by December, if not September.

Volatility creates opportunity

Those two counteracting forces have the potential to create volatility for the remainder of the year, which creates opportunity for active fund managers.

Important information: The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This article is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Issued by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA, which is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored.