European, UK and US central banks started cutting interest rates in June, August and September 2024, respectively, yet beady-eyed investors will have noticed that 10-year bond yields are higher today than they were then.The move higher in yields reflects increasing investor nervousness over high government budget deficits, sticky inflation and uncertainty caused by US trade tariffs.Those concerns

At the end of last year the market was pricing in 1.7% worth of US rate cuts for 2024 but here we are in late August and the Federal Reserve is yet to pull the trigger, largely due to stickier-than-expected inflation.However, after a series of false dawns, we may finally be approaching the point where the Fed acts, with a rate cut widely expected on 18 September. The debate largely centres on whet

On 1 August the Bank of England's Monetary Policy Committee made a 5-4 decision to kickstart its rate-cutting cycle. A 25 basis point reduction in the base rate to 5% marking The Old Lady of Threadneedle Street's first cut since March 2020.This means cash savings rates are heading in one direction, down. And the lower-than-expected jump in UK inflation reported on 14 August only boosted market exp

Rhys Davies Fund ManagerInvesco Bond Income Plus LtdA higher credit quality portfolioOver the past two years, we have increased the credit quality profile of the Invesco Bond Income Plus (BIPS) portfolio. Exposure to investment grade bonds has risen steadily. Within high yield bonds, we have increased the number of bonds we hold with a credit rating of BB and reduced our holdings in the lower cred

THIS IS AN ADVERTISING FEATURE Rhys DaviesFund Manager, InvescoMy job as manager of Invesco Bond Income Plus Ltd (BIPS) is to supply income to enable the investment trust?s board to pay dividends to shareholders.The income comes from a portfolio of bonds. If we think of the portfolio as the income engine, then higher coupons¹ and higher yields over the past two years have allowed us to refue

There are hopes for an improved picture for bonds in 2024 as the rate hiking cycle turns. In this article we look at the case for bonds, consider whether the 60/40 portfolio could make a comeback and look at our best ideas to play the bond market through funds.ARE BONDS POISED FOR A RECOVERY?As central banks signal an end to the interest rate hiking cycle Investors might be thinking the prospects

THIS IS AN ADVERTISING FEATURERhys Davies, Fund ManagerBond markets have been anything but boring over the last couple of years ? what happened?They?ve been exciting ? and painful - for investors. We all know what happened in 2022. Inflation, which is the nemesis of bonds, was a lot higher than most people expected. Interest rates were hiked in reaction. Many people criticise the central banks for

The surge in bond yields as inflationary pressures pushed central banks to move interest rates sharply higher has created an opportunity for investors.Just how generous is this income stream though and how do the potential returns from investing in bonds and credit compare with cash? Or put more simply, what sort of returns can you expect from fixed income?THE IMPACT OF HIGHER INTEREST RATESBonds

Investors are increasingly looking for stocks, bonds or funds that pay a good income.Dividends or bond coupons provide positive returns which are particularly attractive in a more challenging market such as now.Many people have this year lost money from backing high-growth but dividend-less stocks such as Tesla (TSLA:NASDQ) and Netflix (NFLX:NASDAQ), and they're fed up.In the other side of the rin