He believes that when the US and the UK actually start to hike interest rates, markets will become even more volatile. One result could be US companies starting to issue more debt in the lower-yielding European bond markets to take advantage of low yields. Sohn also discusses the benefits of floating rate notes versus traditional bonds.
FSA Investment Forum Singapore: Rate hikes and bonds
In a video interview, Jiek Sohn, investment director at M&G Investments, talks about the impact of the coming US rate hike on European bonds.