2024-01-21 17:50:56
After the period of low interest rates, analysts and investors proclaimed the big comeback of bonds last year. “Bonds are not back,” says Kunal Mehta in an interview with the FAZ. “Bonds are only returning to normality out of a kind of identity crisis with low inflation and low returns.” Mehta heads the bond investments department at ETF sponsor Vanguard. Analysts are no longer speculating whether the central banks will lower interest rates again this year, but only when and how often they will do it. But even with the prospect of falling key interest rates, bonds still offer investment opportunities this year.
Friedrich Luithlen, head of debt capital markets at DZ Bank, is certain that the current speculation as to when the first interest rate hike will come is driving the bond markets significantly. “We believe the first rate cuts will come in the fourth quarter and the yield curve will slowly normalize over the course of the year,” he says.
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