Inflation fears start to rock rates

Rates markets at the start of Q2 began to see the effect of inflation concerns, along with central bank responses. While the solution to inflation is to increase wages, says Eric Vanraes, head of fixed income investments at Banque Eric Sturdza, the temporary financing of private income is the existing stop gap.

The slope of the curve in European and US is starting to steepen. If spreads for credit are so low they behave as a proxy to government bonds, investment managers need to consider which fixed income instruments will offer the best returns in a potentially volatile environment without significantly increasing the risk profile of portfolios.

Published on June 17, 2021

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