Bringing you live news and features since 2006 

Bond funds set to rebound in 2019

RELATED TOPICS​

Bond fund providers have good reason to be positive, with the re-emergence of volatility likely to generate some exciting returns in 2019, especially in high yield, according to the latest issue of The Cerulli Edge – European Monthly Product Trends Edition.

Bonds suffered late last year, partly due to the anticipation of the effects of the end of quantitative easing programs in various parts of the world, says Cerulli Associates, a global research and consulting firm. Most bond funds experienced negative performance and outflows followed, with high-yield bond funds hardest hit on both counts.
 
“However, in the first few weeks of 2019 there was a resurgence in certain quarters of the bond market as investors sought safety,” says André Schnurrenberger, managing director, Europe at Cerulli. “And there is no place safer than German government bonds. Yields on 10-year German government bonds touched 0.08 per cent in early February. There could yet be a return to the situation of 2016, when investors were paying to hold German debt.”
 
Volatility, he says, means that better opportunities in credit may lie ahead. “We don’t believe that investors coming in now have missed the rally. Investors looking higher up the risk curve while staying within fixed income will see more scope for gains in high-yield bonds and emerging markets (EM),” says Schnurrenberger. “Such investors are increasingly favoring the passive route, although the surge in such products is from a low base. Exchange-traded funds are growing fastest.”
 
Cerulli maintains that the marketplace is not as crowded as it might appear, leaving providers with room for further growth and competing products. Active funds will continue seeking to leverage their expertise in EM debt to help them outperform benchmarks.

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Ryan McCormack, Invesco
This year sees the 25th anniversary of Invesco’s QQQ, the USD240 billion ETF – the fifth largest ETF in the...
ETFs
The European ETF market achieved a record 28 per cent growth – reaching over USD1.8 trillion assets under management (AUM)...
Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by