SECTOR PROFILE
“ Investment grade corporate bonds currently offer higher income and higher returns compared with developed market sovereign bonds ”
Fatima Luis Senior portfolio manager at Mirabaud
government bonds would typically be expected to do the heavy lifting , but the IA UK Gilts sector did the worst of the lot , as spiking yields caused it to fall 23.9 %. Such declines have left investors scratching their heads as to where to turn for protection . However , as analysts warn the end of the rate-hiking cycle may be in sight , could 2023 be an attractive entry point for investors in corporate bonds ?
Embracing change Government bonds make up most of the latter component in a typical 60 / 40 portfolio as they occupy the lowest point on the risk spectrum . Or they did before last year , notes Fatima Luis , senior portfolio manager at Mirabaud .
“ We ’ re facing political disarray in the UK , with a revolving government rehashing policy and ramping up volatility ,” she says .
With government bonds no longer
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