Harvesting bond returns as rates rise
The climate is changing for fixed income. Quantitative easing is winding down. Interest rates look ready to start reversing a generation of decline. On the face of it, this seems a difficult background for bonds and, indeed, has already contributed to market volatility. Yet we believe it will be hard to replace the diversification, liquidity and security of bonds. In fact, we believe demand will continue to grow as populations age and increasingly need retirement income.
The views and opinions contained herein are those of Schroders' investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.'s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.