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.
08 April 2019
Are the yield curve’s predicative powers diminishing?
The US yield curve has inverted before every recorded recession over the last five decades, however the spate of recent and unconventional monetary policy could potentially be rendering the barometer ...
04 April 2019
Investors’ yield appetite has returned and the Asian credit rally shows no sign of abating
This rally is being driven by a combination of a dovish Federal Reserve, accommodative Chinese policies and signs of a trade war resolution, all of which appear to have revised investor sentiment.
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.
21 June 2019
Lower rates, no recession
Navigating through all the noise out there, it seems the most sensible expectation that investors should have is described by “lower rates but no recession”. Central banks were more dovish again this ...
07 June 2019
Long, but not wrong
Twitter output dips, markets stabilise. Or was it the central banks? And at the same time more and more of the bond market is negatively yielding. The long-end of the government bond market still has ...
17 May 2019
The Art… or chance of a Deal
The outlook for economic growth implied by global bonds continues to worsen as risk-free yields continue to fall.