[Outlook-in-Five] Investing amidst inflation

Inflation is called the bondholder’s worst enemy, and for good reason, as it has a pernicious impact on fixed income investments. We recently had a headline inflation number of 8.6%, the highest since 1981, and coincidentally, one of the worst 1H for fixed income investments in modern memory, with USD credit portfolios down in double digits, and some down as much as 15 -18%. Given these moves, there are two key concerns bond investors might logically be wondering – first, if there is any way to insulate one’s portfolio against rising rates, and second, if there is no sure-fire way to hedge against rising rates, then should one abandon the asset class altogether? Tune in to our latest podcast with Todd Schubert, Head of Fixed Income Research, to find out more.