PERSPECTIVE3-5 min to read

Why now for Bonds: An insurer’s perspective

2022, a year which had offered initial positivity as Covid-19 lockdowns relaxed globally, turned into an annus horribilis for bond investors. Following a decade of dovish monetary policy and the resultant low – sometimes negative – interest rates across the world, bond yields have now dramatically increased on the back of inflationary pressures.

15/03/2023
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Read full reportWhy now for Bonds -an insurer's perspective
7 pages

Authors

Ruolin Wang
Solutions Manager
Michael Lake
Investment Director, Fixed Income

Over the last 12 months, central banks’ expectations that increasing inflation was a “transient” phenomenon and a hangover of the Covid-19 pandemic have been proven wrong.

The continued rate rises since spring 2022 have put additional pressure on government finances, and led to higher yields. This rise in yields has hit asset valuations across the board. In the UK, this was further exacerbated by the markets reaction to the September “mini-budget” and the ensuing LDI turmoil. These changes in the market are a cue for insurers to review their investment strategies and make sure that they are still fit-for-purpose.

Read full reportWhy now for Bonds -an insurer's perspective
7 pages

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Authors

Ruolin Wang
Solutions Manager
Michael Lake
Investment Director, Fixed Income

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