Schroders: bond investors can generate returns in low rate, post-Brexit world

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Schroders - How can bond investors generate returns in a low rate, post-Brexit world?

Bond investors seeking stable returns face an increasingly difficult task, but there are options available.

Brexit burden

 

What the UK's June decision to leave the EU will mean to regional - or global - economic viability is still a matter of heated debate. What most investors agree on is that Brexit only adds to the already elevated level of market uncertainty, and has made life even more difficult for bond investors. Interest rates across the world remain at historic lows and liquidity is compromised by central bank buying activity. Yields have fallen, again, and the lack of liquidity has led to bouts of extreme volatility. 

 

Click here to see this and other articles from Schroders on their website

 

Author

Paul Grainger

Fund Manager, Fixed Income Schroders
September 2016

Please note that these are the views of Paul Grainger, Fund Manager, Fixed Income for Schroders and should not be interpreted as the views of RL360.

360 fund links

A range of Schroders funds can be accessed through our guided architecture products Oracle, Paragon, Protected Lifestyle, Protected Lifestyle Lebanon, Quantum, and also through our PIMS portfolio bond.