Show Notes
Higher bond yields are transforming the investment case for fixed income. But with inflation remaining elevated, interest-rate expectations shifting and markets volatile, where are the best opportunities for investors?
In this episode of the Asset Allocator podcast, Amina Zafar and David Thorpe are joined by Fahad Hassan, chief investment officer at Albemarle Street Partners, to discuss how investors should approach bonds, equities and portfolio construction in a higher-for-longer interest-rate environment. They examine why shorter-duration government bonds could offer attractive yields without the volatility of longer-dated debt, whether government bonds can still act as a safe haven, and where corporate bonds and high-yield debt fit into portfolios.
The conversation also explores what persistent inflation could mean for interest rates and markets, the risks facing the US and European economies, and why strong corporate earnings have continued to support equities despite market turbulence.
Timestamps 00:00 - Higher bond yields and new fixed income opportunities 05:14 – Is higher-for-longer inflation here to stay? 11:02 – Could an inflation shock become a growth shock? 15:51 – Are there any safe-haven assets left?
The Asset Allocator Podcast discusses the big issues in UK fund selection and how wealth managers are positioning their portfolios. Sign up to the newsletter. Hosted on Acast. See acast.com/privacy for more information.
More from Asset Allocator
Commodities should serve as a reliable safe haven in the event of an equity downturn next year according to Trevor Greetham, head of multi-asset at Royal London Asset Management, who shared his prediction when he joined this week’s Asset Allocator podcast.
Government bond yields are approaching five per cent, raising a crucial question for investors: could higher interest rates threaten global stock markets, or are bonds becoming a more attractive investment than equities?
How should investors build a diversified portfolio when bond yields are rising, inflation remains a risk and the AI boom is reshaping global equity markets?
Forecasting macro factors are much more difficult than they were in the past.
Fears over a lack of de-escalation in Iran and reservations about whether AI companies can continue their trajectory have led to bond market volatility and worryingly persistent inflation.