Fixed income in a volatile world: adapting to a new reality

Fixed income markets have undergone a fundamental shift, with volatility no longer a short-term disruption but a persistent challenge. The traditional role of bonds as a hedge against equity market downturns has weakened, prompting investors to rethink their approach. Structural changes—including rising geopolitical tensions, deglobalisation, and shifting economic growth patterns—have reshaped risk dynamics. Successfully managing fixed income exposure in this new environment requires active management, flexible strategies, and a sharp focus on risk-adjusted valuations. As historical correlations...