Identify fixed income opportunities in uncertain times

 

June 2023 | 2 min read  

Identify fixed income opportunities in uncertain times

Central banks in developed markets have started hiking rates in 2022, as a measure to cool down overheating economies and tame inflation.  

As much of the hard work in raising rates has already been done, the Fed has voted to keep its rate unchanged on 14 June, still reiterating its willingness to continue with further monetary tightening. In Europe, the ECB raised its rates by 25 basis points on 15 June.

While the two central banks took different decisions during their last meetings, they are both following a data-dependent approach, basing their future decision on inflation dynamics. Growth concerns, especially in the US, further contribute to reduce market visibility and foster uncertainty.

However, volatility per se is not necessarily a negative factor. Active investors could generate alpha in this market environment, leveraging their skillset to identify opportunities and seize them.

Especially in moments when the path ahead is not crystal-clear, adopting an active and unbiased approach could be beneficial. This provides the agility to capture opportunities as they arise, and across a broad investment universe. In addition, via a benchmark aware, rather than constrained, approach, investors can exclude selected securities that they do not favour, as well take tactical off-benchmark bets occasionally.

In every market conditions, a strong expertise is key. Thanks to a team with over 20 years of experience, the Amundi Alpha Fixed Income platform represents a trusted partner in fixed income investing.

Discover more about our Fixed Income fund offering

Amundi Funds Global Aggregate Bond

Leveraging an active and flexible approach, the fund aims to capture opportunities across the broad global aggregate universe; this is enriched by active currency management, which aims to provide an opportunity to generate additional performance.

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 Important information

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 22 June 2023. 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. All investors should seek professional advice prior to any investment decision, in order to determine the risks associated with the investment and its suitability. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.

Date of first use: 22 June 2023

Doc ID: 2964331