Why the risks of investing in bonds are even more 'one-sided' than normal

The return of inflation, low yields and the spread of the new Omicron variant of coronavirus have raised some awkward questions for bonds and their role in portoflios.

Yield curves, often used by investors to gauge the market's expectations for growth, have been flattening recently which suggests there is widespread concern about the economic outlook.

With quantitative easing coming to an end in the UK and the Federal Reserve announcing the end of tapering, what does this mean the the outlook for bonds?

This week FTAdviser's special projects editor David Thorpe is joined Rupert Harrison, chief investment officer at Kingswood, Eugene Philalithis, head of multi-asset investment management for Europe at Fidelity International, and Dickie Hodges, manager of the Nomura Global Dynamic Bond fund.

They discuss the potential impact of looming changes to monetary policy, how to allocate during times of inflation, the outlook for high-yield bonds and why yields generally are stubbornly refusing to rise.

The FTAdviser Podcast is the weekly podcast for financial advisers, brought to you by FTAdviser. Each week, FTAdviser is joined by guests from the industry to discuss the week in news and pressing industry issues.


 

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