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.
02 July 2019
Chasing yield: Bond liquidity in a post-crisis world
There has been no shortage of press coverage on financial market liquidity in recent months, with at least three examples of asset managers experiencing difficulties with the management of mutual fun ...
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.
23 August 2019
Over the long run, total return in bond investing is driven by income. This year it has all been about capital appreciation. Bond prices have moved aggressively and this leaves the market subject to ...
15 August 2019
Doesn't Feel Good
Bond yields have plunged this summer. The cyclical slowdown and a wall of political worries has created a surge in demand for safe assets. Investors are trying to figure out what it all means.
19 July 2019
Holidays in the sun
President Trump appears to want much lower rates and a weaker dollar. Those views are political. If we were to get them, then US inflation risk premiums could rise.