What goes down will go back up: A clear, well-informed, forensic approach to rescue fixed income markets is crucial

Deep Dive into fixed income

"Don't bring me problems, bring me solutions", is a progressive well-meant saying, but in fixed income, it can be a complex problem-solving approach, fraught with risks and avoidable distractions.

It is therefore important to take a step back and clearly understand the issues facing investors to then achieve the optimal solution. 1. Identify the challenges With a multi-decade bull run in bond markets, culminating in very positive gains last year following the swift, eye-catching repair in credit markets after the Covid-induced market crash last March, conventional wisdom says, "what goes up, must come down".  There is usually an element of truth in that point of view, so it warrants a closer look. Indeed, there are three distinct watchpoints in fixed income markets right now:...