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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
Add BT as a preferred sourcePublished Tue, Mar 2, 2021 · 09:50 PM
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.
