Schroders research, covering four decades of data, shows how different types of bond have performed when rates were rising.
Global corporate bond valuations are elevated and insufficient to compensate for risk, but there will continue to be selective opportunities to take high conviction positions.
In today’s complacent and expensive bond markets, an active and flexible approach is needed. We look at where the risks and opportunities lie.
Our research, which looks at episodes of rising rates since 1970, suggests income-producing assets don’t perform as investors might expect.
Rajeev de Mello explains that emerging markets are prepared for tighter monetary policy and highlights the Asian countries offering the most attractive yields.