Skilled active management? The cocktail of ballooning inflation, interest rates and dispersion across fixed income sectors basically is giving managers the proverbial chance to strut their stuff, according to -wellington.com.
That’s why now might be an idyllic chance for investors to put their portfolios in a space to opportunistically position their portfolios.
Their individual fixed income markets have priced in the gulf in threats of recession and inflation in the euro area opposed to the U.S, the site continued. Dating back to the dawn of the Ukrainian invasion, compared to the U.S., credit spreads in the euro area have gotten wider.
This year, investor trepidations over fixed income performance have maintained their momentum, according to wellsfargo.com. Among top questions in the minds of income investors:
- What is happening to bonds so far in 2022?
- Why continue to invest in bonds?
- Why is the Fed garnering so much attention this year?
- What should investors expect from the remaining three Fed meetings of this year?
- What does Fed quantitative tightening mean?
- What do you mean when you say, “financial conditions in the economy are tightening”?
- Should we be worried about liquidity in bond markets?
- What is the shape of the U.S. Treasury yield curve telling us?