Global bonds: four reasons for optimism

High inflation and an aggressive response by central banks led to a challenging 2022 and poor performance among many asset classes. However, there are a number of reasons why bonds are becoming increasingly attractive and we are expecting to see greater investor demand for fixed income in 2023. Firstly, there are signs that inflation pressures are easing, led by US disinflation. Secondly, slower growth dynamics – particularly in the US. Thirdly, central banks are closer to ending their rate hiking cycles, particularly those economies with a greater sensitivity to higher interest rates....