T. Rowe Price's Ritu Vohora: Rethinking fixed income

Beware, inversion ahead

The sharp rise in global bond yields since early 2022 has boosted the attractiveness for fixed income assets, but the key question facing investors is has the fixed income boat already sailed?

After a decade of ultra-loose monetary conditions that suppressed yields and reduced the effectiveness of bonds to diversify portfolios - the case for fixed income assets seems to be ironclad. Rising interest rates have boosted the income they offer with yields in many sectors at multi-year highs. Take high yield debt, for example. With global and European high yield debt yields near decade-highs, they represent good value for investors to lock in an attractive yield. History shows investors with a one- to- two-year time horizon can reasonably expect to earn double digits returns if they...