By Nick Gartside via Iris.xyz
The realities for fixed income investors have changed. How is this being reflected in markets?
Bond investing has become increasingly difficult over the past decade. Markets have been heavily distorted by ultra-low interest rates and quantitative easing, as well as by extreme risk aversion in response to the global economic crisis and the eurozone debt crisis.
With bond yields still at historically low levels, investors can no longer rely on coupons for the majority of their fixed income returns. Instead, managers are increasingly challenged to generate capital gains by employing the full fixed income tool kit.
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