Negative returns
Baring Asset Management has warned that many global bond investors face negative total returns this year. Low yields on long-term bonds, momentum trading, over-estimating future supply, and buying that is not sensitive to price, are making investors nervous. This is especially true in continental Europe, and many investors are overweight European bonds.
Going short on bonds could help overcome the problem. “Conventional bond funds are facing increased volatility,” said Colin Harte, manager of Baring’s directional global bond trust.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
