Bond Investors' Income Buffer Seen to be Better Versus Recent Years

Dow Jones
昨天

0517 GMT - Higher yields now provide a substantially better income buffer than in recent years, while cash remains exposed to inflation and reinvestment risk, Julius Baer's Afonso Borges says in a note. A disorderly bond crisis is unlikely, according to Julius Baer. Within fixed income, Julius Baer favors high-quality investment-grade corporate bonds in the five-to-10-year segment, where carry and roll-down potential compensate investors without excessive exposure to a fiscal-driven rise in long-end term premia, the fixed income analyst says. Julius Baer complements this allocation with U.S. Treasury inflation protected securities and real assets as protection against a less orderly fiscal adjustment.

 

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