Why 'extra caution' is required on interest rate and credit exposure

2019 has been a stellar year for global bond markets, as weak global economic growth and low inflation have combined with ever more accommodative central banks to push global bond yields significantly lower.

With more than $17trn of negative-yielding debt, mostly that of governments, as of mid-September, unsurprisingly investors have willingly embraced more risk-taking behaviour in favour of yield enhancement in their bond portfolios. Mirabaud AM launches second fixed maturity EM debt strategy In the government bond world, emerging market bonds and previous pariahs of European debt markets such as Greece and Italy have also seen yields collapse. In credit markets, investment grade and high-yield bonds have benefited from the strong demand of investors chasing enhanced yields in a low-y...