As yields reach new record lows, some investors have started to question the role of bonds, citing several ‘myths’ when doing so. Namely that negative yields mean negative returns, that rates can only go up from here, that fiscal and monetary policy will result in inflation and that bonds offer little diversification anymore.
Fidelity Portfolio Manager Sajiv Vaid tackles each of these myths head on and concludes that, not only does fixed income have an important role to play for investors, but also investment-grade corporate bonds, in particular, offer attractive prospects for income-seeking investors heading into 2021 and beyond.
This video formed part of AJ Bell’s Investival 2020 webinar, broadcast 19–20 November 2020.
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