Bond investors enjoyed a highly lucrative decade from the end of the global financial crisis to the start of the pandemic, as persistently low inflation and interest rates, combined with central bank asset purchase programmes, meant that even as economic growth returned, bond prices stayed high.Â
But the rapid return of growth, this time accompanied by sharp inflation, has precipitated interest rate increases from central banks, and with the promise of more of that to come, bond prices are falling, and investors are calling into question the fundamental role of bonds in portfolios.Â
A major issue for investors is that while bond prices have started to fall, yields are still considerably below inflation.Â
This report will examine the immediate term outlook for bonds as an asset class, and the options available to investors from the different types of bonds.
This report comes with an indicative 30 minutes of CPD.Â
