- With inflation still persistent and other worries ahead, how safe are bonds?
- We look at the case for racier debt, and the likes of gilts
‘Interesting’ can be a word packed with subtle menace, especially when used by investors dealing in what are traditionally sleepier assets. It’s a term that has received plenty of use among fixed-income investors in the past year, although in this case the implications have been positive as well as negative.
Bonds sold off heavily last year in a period marked by inflation and rising rates, with the likes of government debt particularly hard hit. The silver lining, of course, came in the form of much higher yields and lower prices, offering some form of compensation and more attractive entry points for both growth and income investors.