There’s an old saying on Wall Street; Nobody rings a bell at the top or the bottom of a market.
As true as this is, many investors have concerns about the risk of a bond bubble bursting.
With gilt yields testing historical lows and the threat of rising interest rates, many investors have been questioning the outlook for fixed income.
Once interest rates do start to rise in the UK and Europe, what will it mean for the capital value of bond holdings in portfolios?
My guest on the podcast today is Curtis Evans, Investment Director – European Fixed Income at Fidelity International.
In this episode of Informed Choice Radio, I speak to Curtis about whether a bond bubble continues to exist, the impact of rising interest rates on capital values, why it’s so difficult to call rising rates, steps investors can take to reduce the impact of rising interest rates, whether enough liquidity exists within the bond markets to cope with a sharp sell-off, and much more.
Welcome to Outlook for Fixed Income with Curtis Evans, in episode 175 of Informed Choice Radio.
Some questions I ask:
-Is the fear of a bond bubble still relevant?
-What impact would rising interest rates have on the capital values of bond holdings?
-Why is the timing of interest rate rises so hard to call accurately?
-What steps can you take to protect a fixed income portfolio from the impact of rising rates?
-How far can investors go within a strategic bond environment before they take on risks equivalent to equity holdings?
-Can international bond holdings form part of the solution?
-If there was a sharp sell-off, could bond market cope with the necessary liquidity?
-Can cautious investors still treat bonds as a cautious holding within their portfolios?
Thank you for listening!
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