There are about 28,000 bonds in the global aggregate index. That’s just investment grade bonds. Investors have tens of trillions of dollars of fixed income securities to choose from. It’s a big diverse marketplace which I think should form a significant part of people’s portfolios.

When it comes to the performance of global bonds, 2023 is proving to be a stronger year than 2022. This results from yields having risen substantially, producing greater running yields and less potential for further capital losses. We believe we could see stronger returns later in the year. Looking at the global investment grade benchmark that is hedged back to dollars, returns are still behind cash to this point, 2023, but some recovery could well occur before year end.

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Nigel Jenkins

Nigel Jenkins is a Managing Director at Payden & Rygel. He is a member of the firm’s Investment Policy Committee and oversees the Global Fixed Income strategy team, which manages all Euro and Sterling base currency and global benchmarked fixed income portfolios. Nigel is also part of the three strong leadership team of our unconstrained fixed income team, with a focus on absolute return and multi asset credit portfolios. He is a director of Payden Global Funds plc. and Chairman of Payden AIF ICAV, which houses Payden Multi Asset Credit Fund. Nigel serves on the board of Payden & Rygel Global Limited.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.