Investec's Stopford: Four fixed income themes for Q3

FIXED INCOME ALLOCATIONS

John Stopford, co-head of fixed income at Investec, outlines his views on portfolio positioning for the rest of the quarter.

Risky assets, such as equities and credit spreads, have performed better than the recent run of poor economic data would normally have suggested. They appear to be finding support from defensive investor positioning, and the expectation that central bankers are likely to expand their balance sheets again before too long. Furthermore, data surprises have stabilised of late, and there are good reasons to assume that we are due a run of better data later this year, helped by falling inflation and policy easing. That said, it is still too soon to sound the all clear. A range of issues ...