Time for bond investors to take the wheel?

Higher inflation, faster economic cycles, economic uncertainty: it’s not surprising that central banks around the world are struggling to set interest-rate policy with conviction. This has a knock-on effect for fixed income investors in the form of increased volatility — and we expect this to continue. At the same time, yields remain elevated even as central banks begin to cut rates, meaning that bonds are today able to offer both income and capital appreciation contrary to what occurred in the decade preceding today’s new economic era. 

In this hard-to-navigate environment, how can bond investors continue to elevate their investments and balance opportunities and risks? We think there are three key things to bear in mind.

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