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.
Investors on the lookout for ways to invest more responsibly may have overlooked the ESG characteristics inherent in many municipal bonds.