Bonds are typically viewed as a defensive allocation in portfolios, however, in a world of rising interest rates there are concerns about the impact this will have on fixed income returns. Stuart Dear, Deputy Head of Fixed Income at Schroders explains that the dominant driver of bond returns is the income or coupon received.
To watch the full video, click on the link below:
Related: Emerging Markets in Tough Spot, Says Harvard Professor Reinhart
For more investment strategies, visit the Portfolio Construction Channel.