Deep Dive: Active fixed income managers set to seize 'attractive' bond yields

Passive investing unlikely to win

Fixed income is experiencing its worst year in a generation, with the global government bond market at the epicentre of the sell-off.

As opportunities begin to slowly creep up, investors tell Investment Week how they are approaching the asset class. Inflation is now running at multi-year highs, meaning the three decade long run of "reliable" downside protection and "consistently high" returns, as described by Secor Asset Management portfolio manager Florence Fong-Lopez, has been brought to a halt in the past 12 months.  Stephanie Butcher, chief investment officer at Invesco, explained that the direction of inflation is the key economic variable the firm's fixed income teams are trying to predict.  "This is for th...