Navigate rate rises, seek a steadier yield
Interest rates across the world are anticipated to rise over the next couple of years and market volatility is set to increase as central banks begin tightening monetary policy. In this uncertain climate, duration can be an extremely useful tool to help manage portfolios. Bond managers can use duration to compare the risk sensitivity and potential price volatility of bonds with differing yields, prices, coupons and maturities, adjusting duration depending on the market environment.
At AXA Investment Managers we believe that having an allocation to short duration could help investors navigate uneven markets and potentially deliver steadier yield. Our team has over 15 years’ experience managing short duration, across a range of global strategies from investment grade to high yield bonds.
Our short duration strategies generally invest in bonds with maturities of five years or less and seek to capture high current income with low overall volatility, aiming to help investors meet their investment needs.
Our experts views
Read our experts views on fixed income investing and the search for yield as they examine the ever-changing investment world.
Our strategies cover investment grade, high yield and inflation across Europe, the USA, Asia and emerging markets, helping you find the yield you’re searching for.
Read insights from Chris Iggo, CIO fixed income, as he provides his view on the bond market and the impact this could have on investors.
What’s concerning bond investors? Three risks in three minutes
Returns from global fixed income markets have continued to be disappointing in 2018, and as a result bond investors are focused on a number of risks that could increase volatility in the bond market. In this video Chris Iggo discusses three key risks he believes bond investors should be watching - US interest rates, escalating trade wars and the European political scene.
Yield is tough to find at the best of times and these are not the best of times. Today, investors must navigate low growth, rising interest rates, tightening monetary policy and increasing volatility in the search for sustainable yield.
Discover our experts’ insights on how to tackle the search for yield, the latest short duration news, the impact this changing environment could have your portfolio and how AXA Investment Managers could help you navigate uncertain markets.
11 February 2019
US high-yield outlook: The opportunity in risk
Given the manner in which 2018 panned out, especially in the final weeks, it is understandable if investors approached 2019 with some trepidation.
01 September 2018
Credit and inflation breakevens: what are these metrics and why should investors care?
Understanding breakevens, both the inflation and the credit breakeven could be crucial to mitigating risk.
18 May 2018
Market volatility delivers renewed value in bond markets
Volatility has dominated markets for much of 2018, with the VIX, or so-called fear index, spiking in February1 following a subdued 2017.
22 March 2019
When doves don’t hike
The market believes the Fed is done and is pricing in a rate cut as the next move. For the moment this is a bullish scenario for markets.
15 March 2019
Brexit is either going to happen in the next two weeks, or is going to be delayed, or is never going to happen. The British parliament is divided, as are the members representing the two biggest poli ...
08 March 2019
Government can spend, spend, spend....
Disappointment with growth and concerns about inequality pose challenges to conventional thinking on economic policy