Bond investors could achieve decent returns over coming months as interest rates change, according to a leading chief investment officer who expects central banks to start cutting rates potentially this year, sending bond prices higher.
Colin Purdie, CIO for liquid markets at Aviva Investors, says that the slowing economic growth picture means it is possible that central banks will start cutting rates soon when inflation is under control and then turn their attention to avoiding recessions.
Purdie – who won Funds Europe’s CIO of the Year award in 2022, says: “The next six to nine months will probably see central bank rates rise and then turn around again, which is good from a total return perspective for bonds.”
The CIO spoke to Funds Europe recently, giving his view on interest rates and the prospects for the economy. He said bearish sentiment at the end of 2022 had changed in some cases, with growth now being projected by some official bodies.
*Read the interview here.
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