Bond returns still looks attractive
In a world of political uncertainty, we can be sure of two things. The slow growth environment will continue and central banks globally will continue to pull the monetary lever. It’s getting harder for bond investors, with returns across 30% of the world’s Government bond markets negative.
But according to BTIM’s Head of Income & Fixed Interest, Vimal Gor, there are opportunities for active managers. As central banks drive interest rates across the world lower, he believes investors can make decent capital returns from bonds with a shorter time horizon.
Gor told a Livewire Live panel:
“I think Australian bonds offer very good value, European bonds. At some point Japanese bonds will as well, but you’ll be looking at doing that from the short side,” he said.
Watch this Livewire Live panel session for a discussion on everything macro and what it means for Australian investors – from outlooks on global growth to pressures on central banks, growth industries, recession and how currencies are likely to perform against the US dollar.
Vimal presented on a Livewire Live panel last month. Click here to watch the full panel session.