Vikram Barhat
To state the obvious, risk appetite is the first casualty of a yo-yo market. Investors take a flight to safety and bonds come back in vogue. Not surprisingly, the market volatility of the past six months has caused a continued influx of capital into fixed income. In fact, fixed income trading platform CanDeal announced it saw a record $3 trillion in volume during the month of June.
Amid this flight to safety there has been some speculation that bonds could be the next asset bubble, with investors ignoring the risks associated with a return of inflation.
Investors troubled by these concerns may find a soothing balm of assurance in the opinion of Heather McOuatt, lead manager of the Bissett Bond Fund. Read the full article here.