That bonds were not going to return a great amount of money in 2015 was not a hard call to make a year ago. But how were fund selectors and asset managers looking at fixed income at the end of last year?
The plunge in oil has moved front and centre in investors’ market thinking despite the looming Fed rate decision, experts say. But not all the thinking is negative.
The high yield bond sell-off has proved short-lived. After two months of strong net outflows, fortunes for the asset class have reversed once again. For other fixed income asset classes, fund flows remained negative.
Close to half of Switzerland’s investors will buy the subordinated debt that European banks are expected to issue in the coming years, according to a poll held at Expert Investor Switzerland.
In Switzerland, there are more investors planning to increase exposure to high-yield bonds than to all other fixed income categories combined.
The vast majority of fund selectors from Belgium expect their bond portfolios to return between 0 and 2% annually over the next 5 years, even though they are adding risk.
High yield bonds still have few rivals in Finland. Upon our researcher’s last visit, about six in ten fund selectors told her they planned to increase their exposure to the asset class.
In this new series, we ask a fund selector to pick one of his favourite funds and tell us what makes it so good. We kick off with Omar Gadsby, who chose to highlight the Muzinich Long Short Credit Yield Fund.
While Danish investors remain bullish about the prospects for European equities, they are also in risk-on mode when it comes to bonds.
Investors have stepped up unwinding their long bond positions in June, according to the latest fund flows data provided by Morningstar. Net outflows from investment-grade bonds doubled from the previous month to €6.3bn. Net outflows of €1.5bn from high yield bond funds, the first net outflows since January, were another sign of the bearish mood…
Equities and high yield bonds follow each other wherever they go, both when it comes to fund flows and returns, as we discussed last week on this site. The Barclays Global High Yield Index even followed stocks down on Monday in the aftermath of the breakdown of talks between Greece and its creditors. So, if…
High yield bonds are known for their correlation with equity markets, but it seems the asset class especially has things in common with one specific type of equities.
