Quarterly fixed income views
In our new quarterly fixed income update, Marion Le Morhedec, Head of Active Fixed Income Europe & Asia, covers some of the key questions facing fixed income investors. The final weeks of 2020 saw sentiment buoyed by the removal of uncertainty over the US election and Brexit negotiations, as well as the start of vaccine rollout programmes – while globally central bank policy remains very accommodative. As a result, every fixed income sub-asset class ended the year in strongly positive territory, so where does this leave valuations today? In which sectors and regions might value still be found? Will technical or macroeconomic factors be the strongest driver of markets in early 2021? What about the potential inflation picture? And after a record year for green bond issuance, what’s next for impact bonds?