February 2022 / WEBINAR
Webinar Replay: Fixed Income 2022: Nowhere to Hide?
Why fixed income needs a fresh approach
2022 may be remembered as the year the Fed took away the punchbowl but there are more factors at play which will make this year one of the most challenging fixed income environments. Not only are central banks hiking rates and reducing asset purchases, fiscal policies will tighten and China is unlikely to pursue a massive stimulation, leading to a negative global impulse. Why does this matter? Thanks to central banks’ actions over the past two years, credit valuations and interest rates are remarkably rich given the not-so-transitory inflation, labor and supply chain issues. As central banks remove the accommodation, expect tighter liquidity conditions, higher volatility, higher interest rates and changing bond-equity correlations. Fixed income investors have had two years to prepare for this moment.
Are you ready?
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Arif Husain is the head of Global Fixed Income and chief investment officer of the Fixed Income Division. He is chairman of the Fixed Income Steering Committee and a member of the firm’s Management Committee. Arif is lead portfolio manager for the Global Government Bond High Quality Strategy. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.