Schroders - How can bond investors generate returns in a low rate, post-Brexit world?
Bond investors seeking stable returns face an increasingly difficult task, but there are options available.
What the UK’s June decision to leave the EU will mean to regional – or global – economic viability is still a matter of heated debate. What most investors agree on is that Brexit only adds to the already elevated level of market uncertainty, and has made life even more difficult for bond investors. Interest rates across the world remain at historic lows and liquidity is compromised by central bank buying activity. Yields have fallen, again, and the lack of liquidity has led to bouts of extreme volatility.