Morningstar Uk: Podcasts

Bond Investors: What to do Now

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Synopsis

The Federal Reserve and the Bank of England have hinted that interest rates will rise later this year, and while this is good news for savers – it could spell bad news for bond investors. This month on the Morningstar Podcast we examine how investors are reacting to the risk of the bond bubble bursting, and whether they should be worried. Fixed income investors have benefitted from a bond rally lasting more than a decade - but after much warning the tide has turned, with both Gilts and corporate bonds losing cash this year. Morningstar Editor Emma Wall and Morningstar Portfolio Manager Emma Morgan discuss the latest developments in the Bond market. How can you prepare for an interest rate rise? Bond investors use duration to bet on rising or falling rates, but what exactly is duration? Morningstar’s Senior Passive Funds Analyst Jose Garcia Zarate is here to explain. Investors are losing confidence in bonds as safe haven assets, selling out of bond funds in favour of absolute return strategies and