Where to find value in bonds after the 'taper tantrum'

It would be an understatement to say it has been an interesting and, in many ways, frustrating recent period for bond managers.

Last month was painful across all fixed income sectors and we saw equities retreat too as a result of investors' ‘taper tantrum.' July has seen a reversal in certain fixed income sectors' fortunes. Central bankers around the globe have been quick to reiterate our investment team's belief that tapering of the Fed's QE programme does not mean a tightening in monetary policy, and that we can expect ZIRP (zero interest rate policy) for the foreseeable future. With value being created, buyers have been enticed back into the markets and, although government yields have not fallen, spreads i...