There are 3 item(s) tagged with the keyword "Short Duration".
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Record levels of new bond issues are being driven by hyperscalers seeking to finance rapid growth. As well as new opportunities, these issues bring new risks. Investors looking to get exposure should consider a global, unconstrained short duration strategy to help diversify portfolios against these unique risk factors.
In 2025, short-dated bonds are expected to outperform long-dated ones, as the UK yield curve is likely to steepen due to lower front-end yields while longer-term yields remain elevated. Investors extending duration are not receiving sufficient additional yield to justify the increased risk. As a result, short-dated corporate bonds present an attractive option for those seeking to diversify their cash or UK gilts holdings.
Short-duration bonds offer an attractive cash alternative, with yields exceeding current and expected inflation. Their lower sensitivity to interest rate changes positions them to potentially deliver strong total returns in 2025.
Displaying: 1 - 3 of 3