Fixed income investors are facing new market realities, as the global economy is moving away from a period of steady growth, stable inflation and supportive central banks. Instead, we are braving a new regime of heightened macro volatility, sticky inflation and tighter monetary policies marking the end of an era of extensive monetary easing. Furthermore, we are seeing an increased adoption of sustainable fixed income strategies1 as investors are increasingly rethinking their portfolio to transition to a low-carbon economy.
1Source: GBI as of 31 December 2022. Sustainable fixed income ETFs have grown almost 9 times higher since 2015 (from $7.8 billion to $70.4 billion)
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.