Deep Dive: Pockets of hope for fixed income

Sebastiano Pirro, CIO of Algebris Investments, argued that "bank credit is well placed to perform favourably amid rising inflation and higher interest rates" as financials have evolved to become more resilient in the face of crisis since the Global Financial Crisis. Julie Dickson, investment director at Capital Group, agreed, explaining that fixed income was vital in fulfilling key functions, such as "diversification from equities, capital preservation and income". She said: "Regardless of whether yields rise of fall, investors still look to fixed income to fulfil these three roles." ...