Financial conditions are looser today than at the start of the year
IG bonds saw €2.9bn inflows
The most important factor for European equities for the foreseeable future will be the direction of bond yields.
‘Record’ number consider corporate bonds overvalued
Still important to hold government bonds
Inflation has overshot ECB target of 2%
Yields on benchmark 10-year UK government bonds jump following announcement
Ian Kenny, head of fixed income at Smith & Williamson, reflects on how globalisation and growing debt levels have impacted the bond markets over the past ten months.
Brendan de Jongh, SA head of research at PortfolioMetrix, explains the benefits of holding an asset class when the risks have increased and yields have declined.