Bond yields have fallen ever lower as the COVID-19 recession and disinflation have forced central banks and governments to implement whatever-it-takes measures to save jobs and industries. In doing so, they now appear to be the dominant force in fixed income markets, with significant implications for investors. Dominick DeAlto, chief investment officer of fixed income, talks to senior investment strategist Daniel Morris about these implications and where we see opportunities in fixed income today.
This Market weekly is part of the BNP Paribas Asset Management podcast series on our investment views and strategies.
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Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.