114. A masterclass in interest rates, inflation and fixed income

Gary Kirk, co-manager of TwentyFour Dynamic Bond fund, talks to us about the outlook for interest rates and inflation. He explains subordinated bank bonds and asset backed securities and tells us why they are attractive for investors in today’s environment. For anyone wanting to learn more about fixed income and how it works, this podcast is highly educational.
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TwentyFour Dynamic Bond has a very flexible approach in order to take advantage of changes in market conditions. It may invest across the whole range of fixed interest assets. The income produced is usually one of the highest in the sector but will fluctuate as investments and market conditions change.

Read more about the TwentyFour Dynamic Bond fund

What’s covered in this podcast:

  • The risks of investing in bonds in a recession and investor concerns over the solvency of some companies [1:01]
  • Why central banks becoming the ‘buyers of last resort’ has helped companies refinance [3:20]
  • Why low interest rates could force investors into corporate bonds [4:19]
  • Whether inflation will become a problem [6:23]
  • How the US treasury curve can help predict inflation [9:57]
  • Investment opportunities in pro-cyclical credits [12:44]
  • An explanation of subordinated bank bonds and why they are attractive [14:50]
  • An explanation of asset backed securities and why TwentyFour specialises in them [18:10]
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