Reasons to be optimistic about fixed income in spite of the COVID-19 crisis
The global spread of COVID-19, and lockdown measures put in place to tackle it, has undoubtedly impacted global financial markets, with some comparisons being drawn to the global financial crisis in 2008. Bond markets have not been immune from widespread sell-offs, with liquidity becoming harder to find, risk levels moving higher and credit spreads significantly wider at the height of the crisis.
Although markets have staged something of a recovery and spreads have tightened in recent weeks, a great deal of uncertainty remains over the economic outlook and we expect ongoing volatility for some time to come. Consequently, we continue to monitor developments and markets closely.
In such an environment, we believe that flexibly managing a diversified pool of different types of fixed income assets, and taking advantage of potential pricing opportunities, are key when preparing for periods of market turbulence.
In this video, find out more from Nicolas Trindade, Portfolio Manager for the sterling credit short duration and global short duration strategies, and Nick Hayes, Portfolio Manager for the global strategic bonds strategy.