Credit markets are supported by the stable macroeconomic backdrop and improved financial conditions following interest rate cuts.
Local bond rates in select emerging markets may present opportunities given expectations of a weaker USD and investor appetite for diversification.
Net inflows into fixed income ETFs are proceeding at record pace, with adoption spanning investor classes.
Over the last couple of years, bonds have been anything but boring. The low-income environment that the world lived through in the aftermath of the global financial crisis has been completely turned on its head.
First a pandemic, then supply chain disruption, and then the outbreak of war in Europe. Each of these factors contributed to the highest level of inflation experienced in a generation, and a cycle of aggressive interest rate hikes from almost all major central banks.
Against this backdrop, fixed income has defied its staid reputation by experiencing almost unprecedented volatility, and now presents rare opportunities. Put simply, the “income” in “fixed income” is back.
As we head into 2024, the market consensus is generally that interest rates have peaked – which is exciting news for bond investors. We believe the case for the asset class is the strongest it has been for years, with the potential peak in interest rates offering the opportunity to lock in a higher level of income for the years to come.
As we step forward into this new environment, it gives us great pleasure to outline what this means across a broad range of fixed income asset classes. Please read on for further insights and analysis. As always, our teams are on hand to answer any questions you may have.
Discover Invesco's diverse fixed income strategies, combining global expertise and innovative solutions to meet your investment needs.
Discover our Global Fixed Income Strategy Monthly Report, we offer an outlook for interest rates and currencies and look at which fixed income assets are favoured across a range of market environments.
In a time of immense disruption, we believe resilience endures and provides a favourable investment environment for the rest of the year.
European ETFs gathered US$45bn in May. Explore the latest ETF Snapshot for market flows, upcoming IPOs, fixed income yields and currency hedging, and the outlook for gold.
