Talking PointJan 29 2025

How bond yields are shaping fixed income and diversification

After engaging with this content, which carries an indicative 30 minutes of CPD, you will be able to:

  • Explain how rising gilt yields are affecting fixed income investing
  • Describe the role of fixed income as a portfolio diversifier
  • Describe the opportunities that green bonds offer to investors
  • Explain how rising gilt yields are affecting fixed income investing
  • Describe the role of fixed income as a portfolio diversifier
  • Describe the opportunities that green bonds offer to investors
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CPD
Approx.30min
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CPD
Approx.30min
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CPD
Approx.30min

Companies are showing “great resilience” to exist in the current high interest rate environment, which is presenting opportunities for fixed income investors, said Paul Angell, head of investment research at AJ Bell.

Angell added that while higher yields are attractive, economic concerns and potential recession risks necessitated caution and action around government bond exposure.

Speaking with FT Adviser deputy features editor Ima Jackson-Obot, Angell also discussed the role of fixed income as a portfolio diversifier, emphasising the importance of diversification within fixed income assets.

The resilience of corporates, particularly investment-grade corporates, was noted.

Additionally, Angell considers the potential of green bonds and the challenges of alternatives in portfolios.

The video and accompanying questions are worth 30 minutes of CPD.

ima.jacksonobot@ft.com

CPD
Approx.30min
Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.
  1. How are rising yields reshaping the appeal of fixed income investments in the UK?
  2. Why does Paul Angell favour investment-grade corporate bonds over government bonds?
  3. How are rising gilt yields affecting fixed income investment strategies?
  4. What approach does Angell favour when it comes to building a diverse fixed income portfolio?
  5. What is one risk associated with green bonds in the current political environment?
  6. What is a key consideration for investors when choosing strategic bond funds?
    7. To bank your CPD you must Sign in or Register.

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