Inflation and Fixed Income: Threat and Opportunity

Market Update

Inflation fears have been a major driver for financial markets in 2021, with a damaging shift higher in US Treasury yields in particular showing investors’ concern that strong growth and price rises as the global economy opens up could prompt central banks to tighten policy sooner than expected.

But what does inflation actually mean for bond investors? TwentyFour partners Gordon Shannon, Doug Charleston and Felipe Villarroel sat down to debate its potential impact on the fixed income universe, from government bonds and investment grade credit through to ABS and high yield.