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]
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

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