With 2014 set to become another challenging year in fixed income, Ian Winship, manager of the BlackRock Global Absolute Return Bond fund, on where he is anticipating opportunities...
Volatility in bond markets and the lack of returns from cash deposits are making many investors reconsider how they view these asset classes. The value of cash savings has been falling as the rate of inflation has exceeded the interest paid by banks. For example, the European Central Bank’s (ECB) key interest rate is currently 0.25%, while the inflation rate in Germany is 1.4%, in France 0.7%, Italy 0.7% and the Netherlands 1.67%. In the UK, the key interest rate is 0.5%, while inflation is around 2%. For many conservative investors, fixed income has been an asset class of choice due ...
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