Corporate bonds

Talking heads – Testing times for corporate bonds

Increased market volatility and uncertainty about the pace at which the ECB will proceed with its bond purchases are the main tests that investors in European corporate bonds are currently facing. Mitigating factors such as strong earnings, strong cash positions and low defaults could be negated by concerns that the central bank will need to take tougher action to contain inflation.

Listen to our talking heads podcast with Victoria Whitehead, senior portfolio manager for European investment grade corporate bonds, and chief market strategist Daniel Morris as they discuss the outlook for European credit and the appeal of sectors such as services financial.

Formerly known as the “Weekly Market”, talking heads brings investors in-depth information on topics that really matter to them, analysis of the world and markets through the lens of sustainability, and other interesting conversations with investment experts.

Warning

All opinions expressed herein are those of the author as of the date of publication, are based on available information and are subject to change without notice. Individual portfolio management teams may have different views and make different investment decisions for different clients. The opinions expressed in this podcast do not constitute investment advice.

The value of investments and the income from them can go down as well as up and investors may not get back their initial investment. Past performance does not guarantee future returns.

Investing in emerging markets, or in specialized or restricted sectors is likely to be subject to above average volatility due to a high degree of concentration, greater uncertainty as less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Some emerging markets offer less security than the majority of developed international markets. For this reason, portfolio transaction, liquidation and custody services on behalf of funds investing in emerging markets may involve greater risk.