Is the market exaggerating the death of bonds?

Hunt for yield remains

Fraser Hedgley, head of client portfolio managers, EMEA at Nomura Asset Management, takes a closer look at the risks and opportunities for bond investors.

Have you heard the one about 'bond markets are dead?' Every year since the so-called 'taper tantrum' in 2013 (when the Federal Reserve first threatened to reduce its asset purchase program), bond markets have been apparently set for catastrophe, disaster and Armageddon.  UK long gilts (let alone credit) returned 18.5%* last year, perhaps indicating some exaggeration in the reports. Don't believe a word of it. Within bond markets, the Lehman shock was finished within a year, the last round of the Greek crisis was shrugged off in a month, Brexit in a few days. There is still a desperate...