Schroders' Jolly forecasts bond market trends for 2013

Bob Jolly (pictured), head of global macro at Schroders, reviews a year in global bond markets and asks what themes could characterise the asset class in 2013.

With yields on developed market bonds still at depressed levels and credit spreads considerably lower than last year, it is clear that a passive approach towards global bond market beta is unlikely to make you rich this year. There cannot be a repeat in 2013 of the bond market returns of 2012. But it will be another year where markets will swing between euphoria – when either growth or politicians offer positive surprises – and misery – when either the political system takes its collective foot off the reform agenda or we see a temporary ebbing in economic momentum. Trends to watch in...