Despatches  

Could bonds come back into fashion?

  • Describe some of the challenges bond investors are facing at present
  • Identify why investors might be choosing bonds
  • Explain the correlation between bonds and equities
CPD
Approx.30min
The current state of the bond market
Do low prices present a buying opportunity?
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The bond market has been through a rough ride in recent months, with bond prices falling, compounded by drama on the gilts markets, created by the "mini"-Budget.

But fund managers think prices are so low that the current state of affairs looks like a buying opportunity. But which type of bonds should an investor go for and why are they investing in bonds? Additionally, questions arise over high yield bonds, and whether, as we enter uncertain economic times, these are still relatively safe investments.

All these questions will be looked at in this report which is worth an indicative 30 minutes' CPD.

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CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Bonds with a longer maturity profile have higher sensitivity to interest rate rises, true or false?

  2. According to Phil Milburn, what has been the manipulation of the bond market?

  3. Fund managers believe the inverse ocrrelation between bonds and equities is returning, true or false?

  4. How much has the 10 year gilt lost this year?

  5. What is the main reason clients are buying bonds right now, according to Giles Dauphine?

  6. When does Phil Milburn think interest rates will start falling?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe some of the challenges bond investors are facing at present
  • Identify why investors might be choosing bonds
  • Explain the correlation between bonds and equities

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