Higher yields from bonds mean investors are flocking back into the sector following a \u0022cataclysmic\u0022 year. Read more here.
More than US$332 billion flowed out of active fixed-income strategies in the U.S. last year, according to Morningstar Inc. data. But the tide has now turned and more than US$100 billion has poured into fixed-income funds during the first four months of this year.
Mike Gitlin, global head of fixed income at Capital Group, which manages US$2.2 trillion in assets, told the conference that due to the higher interest rate environment, “we’re seeing an average of US$500 million in net new flows into the bond markets at Capital Group per week.”“I think you’ll see US$1 trillion flow back into the bond market in the next few years,” he added. “I think it’s coming and I think you’ll see it accelerate.
The ability to generate high yields while taking relatively low levels of risk is set to allow more traditionally risk-averse investors — such as those who handle retirement savings — to allocate into the space. “We think as interest rates calm in the market, we feel like there will be one more raise and then sit there through 2023, and probably not have a decrease,” Johnson said. “People will try to lock in those higher rates.”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Families 'facing real pressure' as household debt levels push higher, CMHC warnsCMHC says there are signs more Canadians are having financial difficulty as interest rates rise, adding to household debt loads. Read on.
Read more »
QEH Big Day of Giving set for May 24 | SaltWireMay 24 is the second annual QEH Big Day of Giving – a day for P.E.I. residents to come together and have an impact on the health care of those they love.
Read more »
The U.S. debt ceiling debate is a big deal, says Brian Belski: What investors should knowBrian Belski on why the U.S. debt ceiling is important and where he thinks stock markets and the Canadian dollar are headed. Watch now.
Read more »
The U.S. debt ceiling debate is a big deal, says Brian Belski: What investors should knowBrian Belski on why the U.S. debt ceiling is important and where he thinks stock markets and the Canadian dollar are headed. Watch now.
Read more »
'Gold is the best hedge': The catalyst to take gold price higher is debt ceiling debate, says RBC
Read more »
JPMorgan Chase sees $3-billion net interest income boost from First Republic dealJPMorgan Chase & Co expects its net interest income to rise to $84-billion from higher interest payments in 2023
Read more »