Talking PointMay 25 2023

Fixed income investing in volatile times

  • Describe the current economic conditions and the impact on bonds
  • Identify the type of investor corporate bonds suit
  • Explain how to manage risks in corporate bond markets
  • Describe the current economic conditions and the impact on bonds
  • Identify the type of investor corporate bonds suit
  • Explain how to manage risks in corporate bond markets
Supported by
Schroders
pfs-logo
cisi-logo
CPD
Approx.30min
pfs-logo
cisi-logo
CPD
Approx.30min
Supported by
Schroders
twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Supported by
Schroders
pfs-logo
cisi-logo
CPD
Approx.30min
Fixed income investing in volatile times
Is there still a place for corporate bonds in a portfolio?
Enter
keywords

It goes without saying that 2022 was a tough year for bonds.

They have always been seen as lower risk investments, but due to high interest rates they suffered significant losses.

This year opened with more optimism about the fixed income market as it is anticipated inflation will fall and the rate at which rates have been going up will slow down.

In the corporate bonds space, while some advisers avoid corporate bonds because they come with extra risks such as spread widening or default risk, others stress that there is a place of corporate bonds within portfolios.

By the end of this report, worth 30 minutes of CPD, you should be able to:

  • Describe the current economic conditions and its impact on bonds.
  • Identify the type of investor corporate bonds suit.
  • Explain how to manage risks in corporate bond market.
CPD
Approx.30min
Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.
  1. Why does Chris Fleming say the case for bonds is now more compelling?
  2. True or false, Jasmine Yeo says in a world of inflation volatility, it will be increasingly easier to find offsetting assets and achieve diversification.
  3. In a world defined by inflation volatility, what type of unconventional protections does Yeo suggest investors will need to use?
  4. Why does Darpan Harar say he finds value in the larger, national champion banks?
  5. True or false, David Appleton says corporate bonds may be the right choice for clients seeking a predictable, regular income with a predictable capital return if the investment is held to maturity.
  6. How can investors mitigate corporate bonds' sensitivity to relatively small changes in future interest rate expectations?
  7. To bank your CPD you must sign in or Register.