The collapse in the oil price will feed into inflation next year, but so will the effects of the unprecedented stimulus creating a mixed outlook for inflation. The developed world has reverted back to ultra-low or negative interest rates, which combined with higher supply leaves the outlook for conventional (and even Green Bond) fixed income stable at best.
With index linked bonds already expensive, we see opportunities in the floating rate market and more impact focussed, albeit much riskier, microfinance and impact bond sector.
King & Shaxson will be exploring bond investment opportunities in sustainable and impact investing in our upcoming ESG webinar on 28th April.
They will explore:
- What now for fixed income with low interest rates?
- What about Inflation?