Investors saw fairer value in fixed income markets during the fourth quarter of 2018, according to the CFA's latest Valuation index, as increased volatility drove a more risk-off approach.
Fewer investors see corporate and government bonds as overvalued, falling from 67% in the third quarter of 2018 to 61%, as perceptions of the severity of overvaluation also declined across both asset classes. Industry Voice: Higher volatility unlocks yield Just 16% of the 191 respondents to CFA UK's survey said that government bonds were "very overvalued" in Q4 2018, compared to 24% in the previous quarter, while 69% said corporate bonds were overvalued, down from 76% in Q3. The yield on the JP Morgan Global Government Bond index reached 1.75% and the S&P International Corporate Bo...
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