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New income strategies for a low yielding world

A multi-asset income strategy incorporating call writing is the way forward; it is a more robust approach that promises higher returns for investors for the long term

Published Tue, Mar 2, 2021 · 09:50 PM

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    MARKET expectation of strong fiscal stimulus in the US is on the rise after the Democratic "blue sweep" on Capitol Hill. With "reflation trades" back in the picture, the Covid-19 premium embedded in US Treasuries has gradually unwound, driving yields higher.

    But hold on a minute. We have seen this before. Since the Great Recession of 2008, US bond yields have undergone similar periods of intermittent uptrends only to see huge corrections to subsequent lower lows.

    From a longer term perspective, global bond yields have trended south since the early 1980s.

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