The era of low interest rates is over. Inflation is here, and we believe it’s going to be higher than it was in the past.
The Covid-19 pandemic led to a substantial increase in inflation due to supply-chain bottlenecks at first, geopolitical tensions and high energy prices which have each contributed to a substantial shift in both monetary and fiscal policy.
In this complex scenario, we believe that Fixed Income strategies could be used to protect your capital and grow your returns.
Financial markets have experienced a considerable repricing, which has been particularly evident in the fixed income space and, as a consequence, bonds are now under the spotlight with more attractive valuations and an improved outlook.
At Amundi, we do not focus only on bonds. Money Markets and Short Term bonds, in our view, could be interesting strategies at a time when interest rates are getting higher and traditional savings don’t offer any real benefit.
Amundi, November 2022.
Did you know that cash reserves could generate revenue? Money market funds can be used by corporate treasurers seeking to efficiently manage their short-term cash flows.
What are short-term bonds and why should you consider them?
Short-term bond funds seek to invest in short-term bonds of different maturities between one and four years and the funds then purchase a spectrum of financial instruments to better suit the needs of the investor or investors. Find out more in this short article.
Want to know more about what Amundi believes is in hold for the bond market for the coming months? Find out more from Vincent Mortier, Group Chief Investment Officer at Amundi. Vincent explores the long term rates alongside potential market shocks.
After a challenging first half of the year explore why fixed income strategies might provide appealing investment opportunities to investors. Find out more about why we believe now is the time to refocus on fixed income.
Important Information Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of end of 22 November 2022. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.