The US bond market is likely to sees spreads widen as higher-for-longer interest rates begin to stress the economy, says Man Group’s Sriram Reddy.

The US bond market is likely to sees spreads widen as higher-for-longer interest rates begin to stress the economy, says Man Group’s Sriram Reddy.
Plenty of opportunities for eagle-eyed investors to uncover, writes Mark Preskett.
Adding long-duration in the expectation of rate cuts won’t work if neutral is higher than markets expect, portfolio manager Ken Orchard warns.
Investors should use real yields as a guide for allocating into fixed income as central banks diverge on rate cuts.
Morningstar data shows that 15 funds available for distribution in Hong Kong and Singapore were exposed to China’s troubled property sector at the start of the year.
Pictet Asset Management expects rate volatility to continue in the bond market, providing ample opportunity for investors to enter.
Although favouring fixed income Hong Kong investors also poured cash into equity funds, according to Calastone research.
BlackRock’s Neeraj Seth also explains why the US investment giant favours Australia and India currently.
Even if rate cuts don’t materialize, corporate bond returns still look attractive in 2024 according to BNY Mellon’s Insight Investment Management.
Market sentiment should improve after a nervous start to the year, providing opportunities in quality growth stocks and investment grade bonds.
Part of the Mark Allen Group.