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How does inflation affect Fixed Income?

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With inflation around the world generally declining, and most economists believing that inflation has reached its peak for now, market watchers are keeping a firm eye on inflation levels. In particular, they’re looking at when or if inflation can return to a more sustainable rate of around 2% per annum maximum.

The outlook for fixed income investing has been distinctly positive for quite some time. This is due to their greater appeal when the risk-free rate of return reduces. Such opportunities then present for price appreciation of fixed income securities.

To review Fixed Income within the modern economy, IFA Magazine has published the Fixed Income Investments Report 2024. Access your complimentary copy here.

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