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Bonds news & analysis

Not if but when

20 December 2013

With a brightening economic outlook, Julian Hofmann anticipates gathering headwinds for fixed income in 2014.

The great question for the bond market in 2014, as it has been for the past three years, is when? When will the Federal Reserve finally call a halt to the printing presses and taper its gargantuan monthly purchases of US government bonds. If recent spikes in yields for US government debt are any indication, then the market is expecting action relatively quickly, which will have a huge impact on the demand for different classes of fixed-income securities as the year progresses. However, in a sense, it is not just the Fed's actions that will determine the outcome. Simply put, investors have allocated larger than average portions of their portfolios into bonds, and it could be argued that a technical readjustment in order to correct this imbalance is long overdue, now that economic fundamentals have taken a swing upwards.

Recent bonds news & analysis

  1. Mini-bonds under the microscope

    Mini-bonds under the microscope

    By Julian Hofmann | 29 November 2013

    The credit crunch has spawned a whole new asset class in mini-bonds, but despite the

  2. Premier Oil outlines bond offer

    Premier Oil outlines bond offer

    By Julian Hofmann | 27 November 2013

    Premier Oil's new ORB bond hits the road as the company diversifies its funding

  3. Premier Oil drills for bonds

    Premier Oil drills for bonds

    By Julian Hofmann | 22 November 2013

    Premier Oil follows in the footsteps of EnQuest to become the latest oil exploration company to launch a retail bond

  4. IPF taps its bonds

    IPF taps its bonds

    By Julian Hofmann | 08 November 2013

    A bid to increase liquidity on the ORB markets leads International Personal Finance to a novel solution

  5. Co-op strikes debt deal

    Co-op strikes debt deal

    By Julian Hofmann | 04 November 2013

    Retail investors holding Co-op preferences shares and Pibs are spared the worst haircuts in the troubled bank's restructuring programme after a vigorous investor campaign

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