In the fourth part of our series looking at the most topical investment themes for the quarter ahead, Professional Adviser asks multi-managers: with yields nearing negative territory, are bonds 'uninvestable'?
Bond yields - especially on sovereign debt - are low and getting lower, as investors seek safety amid falling oil prices and deflation fears. Germany's 10 year bonds went on sale on 14 Janaury with a coupon of 0.5%, the lowest ever for a euro-area 10 year security. Gilts dropped to below 1% after UK inflation fell to a 15-year low. If yields fall so far they turn negative, investors buying the securities will get less back when the debt matures than what they paid. Multi-managers - who look across the whole investment universe - give their view on whether the asset still merits a ...
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