How will the US presidential elections impact bond markets?

Darren Ruane, head of fixed income, Investec Wealth & Investment, looks at the Republican and Democratic candidates and how their case for the economy could affect bond markets in 2016.

With the US presidential election only seven months away, it is perhaps a good moment to look at the case for investing in US high yield bonds. Both the leading presidential candidates on the Republican and the Democrat side have been putting the case for the creation of a stronger economy that will produce long term sustainable growth. However, despite some good economic headwinds in 2015, in the past six weeks US high yield redemption yields have risen to a level of more than 10%. With the exception of the 2007 financial crisis, the yield on US high yield has only reached 10% ver...