Passive corporate bond investors could face significant losses when the next economic downturn hits. Active managers, however, have more flexibility and should be able to manage these risks more efficiently.
After the disappointment of 2018, Chief Executive Peter Harrison rounds up the factors our fund managers think could lead to a brighter year ahead.
Valuations have become more attractive and fundamentals are reasonably positive. But a period of transition looms, with central bank support being withdrawn and government bonds now offering a more compelling alternative than they have in many years.