Deep Dive: Government bonds 'at least investable again' after fixed income 'horror show' in 2022

‘Every fall comes with opportunity’

The role of fixed income assets in a broad portfolio has been hotly debated after the “horror show” that was 2022, as Square Mile's Paul Angell described last year.

The senior investment consultant recalled how the asset class underwent negative capital returns and a higher correlation to the equity markets than investors expected. Debate around the appropriateness of the 60/40 portfolio was spurred by these lacklustre opportunities and returns in the traditional ‘safe haven' asset class, with some experts calling the death of the classic diversification split. Alternatives such as infrastructure were pitched as the fixed income alternative by fund pickers, as they seemed to provide some counterbalance to the equity market downturn last year. ...