Bonds - Opportunities to come knocking
The September quarter delivered further turbulence across markets, driven by renewed falls in commodity prices, persistent concern around a Chinese hard landing – helped by the RMB devaluation – and (putting these two together) growing anxiety about emerging market economies. Uncertainty about Fed tightening and its impact on both economic outcomes and market liquidity conditions frayed market nerves, and continues to do so beyond the FOMC’s September meeting ‘pass’. Credit spreads moved meaningfully wider, especially on lower-rated global bonds, while sovereign yields fell. Australian bonds outperformed most global peers. Preserving capital as markets adjust is a priority. Stuart Dear, Fund Manager, Fixed Income, discusses how the portfolio is well positioned to continue to provide defensive absolute outcomes and be able to take advantage of the developing opportunities in “The Fix: Opportunities to come knocking” (VIEW LINK)
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