We look at whether investors are right to be wary of high yield bonds amid rising macroeconomic and geopolitical uncertainty.
Bond yields have declined remarkably since 2008, with a growing proportion now below zero. Here we highlight some extreme instances of ultra-low yields and look at what they mean for investors.
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.
The extent of the diversity of global fixed income markets, and the scope for achieving strong returns while managing risk, may be underappreciated by investors.
With mainstream asset classes increasingly correlated over the last decade, investors may be overlooking the benefits of liquid alternatives.