Lower-for-longer still expected despite bump from reflation trade: Allianz

Hong Kong

DESPITE inflationary expectations being revived after the US election, the "lower for longer" investment theme that has dominated financial markets since the global financial crisis might still apply, said senior investors from Allianz Global Investors (AGI).

This is because there are few signs of inflation, and massive spending on infrastructure will take many years to have an effect on the US economy.

However, AGI bond fund managers are avoiding interest rate risk, buying bon…