Where are the bond bargains?

Where are the bond bargains?

If equity market exuberance was the story of last year, it is the bond markets which are roaring at the moment.

The hunt for yield has accelerated from Q2 onwards: the unprecedented yield compression already seen in credit is now apparent in sovereign debt markets once again: whether peripheral European nations, core government bond markets, or even new issuers. The situation is such that Franklin Templeton’s Michael Hasenstab – known for having taken major positions in unloved bond markets like Ireland and Ukraine in recent weeks – has told Investment Week there are no “extreme outlier” opportunities available to him right now. The manager noted these kind of bargains typically emerge every co...