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Unearthing opportunity: Why the rate descent is the time to harvest bonds

Unearthing opportunity: Why the rate descent is the time to harvest bonds

Markets expect interest rates to fall this year, offering a window of opportunity for bonds. Even if valuations may not look as attractive as they were previously, conditions in fixed income and in particular, corporate bonds, offer the opportunity to lock in higher levels of income for the years ahead.

So, are investors prepared to harvest this opportunity?

Matthew Chaldecott, Senior Client Portfolio Manager, Invesco Fixed Income, and Ashar Muhammad, Consultant Relations Director, joined a recent live podcast in association with Investment Week and Professional Pensions to discuss the topic in detail.

Watch now to hear their views on:

  • The state of fixed income in the current macro backdrop
  • Why they think this environment supports a shift from hunting for yield to a buy and maintain strategy
  • Strategies for accessing fixed income.

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

    The strategy will invest in derivatives (complex instruments) which will result in leverage and may result in large fluctuations in value. Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date. Investments in debt instruments which are of lower credit quality may result in large fluctuations in value. Changes in interest rates will result in fluctuations in value.

Important information

  • The event took place on 25 March 2024.

    This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Views and opinions are based on current market conditions and are subject to change.

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