Video: Opportunities for fixed income investors across tight credit spreads and high yields

With credit spreads near historic lows, but total yields remaining attractive for many investors, the bond market is increasingly becoming one for stock pickers, searching out areas that could still generate attractive returns. Mat Rees and Ben Bennett discuss these pockets of value – from European credit to emerging market high yield and even relative value interest rate positions.

In first of a three-part series, they discuss: 

• Possible trajectories for bond yields and spreads over the next six months 
• The chances of a ‘soft landing’ in the US, interest rates remaining higher for longer, and a recession setting in 
• Possible policy directions for the major central banks
• What they see as the relative attractiveness of European credit over US credit 

The conversation also covers the difference between managing unconstrained absolute return bond strategies and benchmark based ones. While the best ideas can be applied across both types, the sizing and universe of investments may differ.