Sam Vereecke, CIO Fixed Income DPAM
Sam Vereecke looks beyond the short-term uncertainties in the bond market and identifies potential opportunities in 2022.
Making short-term forecasts in times of COVID is perilous, as many extraneous factors impact the economy, leading to unexpected developments. We prefer to base our strategy on the longer-term outlook for inflation and growth. We expect both factors to return to their pre-COVID levels.
This long-term attitude has positive implications for the outlook of government bonds in developed and emerging countries. It also implies a certain level of caution on high yield corporate bonds with a CCC rating or on convertibles for example. Besides, it draws attention to the rapid growth of the ESG bond market. This market will most likely continue to grow and introduce investors to an ever-growing range of sustainable opportunities.
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