Editorial


FIXED INCOME


CONTENTS


P4 : Fixed income in numbers The asset class explained in six figures


Not many children tell their parents that they want to be a bond fund manager when they grow up. And I am not surprised. It does not appear the most exciting of professions. With bonds, “you can only lose money”, one such fund manager once told me, adding that he describes himself as professionally misera- ble. There are no days when fortunes can be won…or lost. It all sounds a little too straightforward for me. But that has changed. Inflation is at multi-decade highs, energy costs are shooting up, central banks are to stop buying bonds, interest rates are expected to rise several times this year and yield curves are flatten- ing. This is before the invasion of Ukraine comes into it. Bond managers pulses are certainly beating a little faster these days and they are filling more column inches on news sites and in magazines. So, this makes it a great time to look at the asset class and how the issues above are impacting portfolios. We brought together various players from across the value chain from those who own these assets, those who pick them and those advising on such strategies. You can read about the points raised in our discussion and the issues impacting fixed income portfolios on the following pages. We hope you enjoy this supplement.


Mark Dunne Editor


m.dunne@portfolio-institutional.co.uk


P5: The participants An introduction to those taking part in our debate


P6-23: The discussion


Pension schemes, asset managers and a consultant come together to discuss the many issues impacting the fixed income markets.


P24-25: The case for absolute return Jupiter’s Mark Nash discusses the merits of such an approach in a time when returns are under pressure


P26-27: How has emerging-market credit fared during the Russia/Ukraine crisis? LGIM looks at what war in Europe means for the credit markets in the developing world


P28-29: Sustainable bonds Scott Freedman at Newton looks at how regulation will shape the growth of sustainable bonds


P30-33: Feature: Private credit With central banks about to start their first round of monetary tightening, is the easy money that has fuelled private credit’s exponential growth about to dry up?


April 2022 portfolio institutional roundtable: Fixed Income


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