Global markets are like Levi's jeans at the moment. The famous denim trousers were reputed to be so strong they could be "pulled in two directions by draught horses", writes Bryn Jones, head of fixed income at Rathbones.
So it is with financial markets: the US Fed is trying to raise interest rates, while the European Central Bank and the Bank of Japan continue to loosen policy. This situation should create plenty of opportunities, but there are risks to watch out for as well. Back in March and April, the European Central Bank announced it will buy up corporate bonds, including non-bank financials as it expands its QE programme. The central bank is still fleshing out the details, but it is expected to start buying up corporate securities this month. This should support European bond valuations and t...
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