Relentlessly rising interest rates since the middle of 2022 have made bonds the investment of choice for many allocators.
As a result, fixed income ETFs enjoyed a record H1, with corporate bond products playing an increasingly important role in investors’ portfolios. On 14 September, the European Central Bank (ECB) hiked rates to an all-time high of 4%, sending the interest-rate sensitive two-year German bund yields to 3.16%.
With yields rising at home, European investors have favoured euro-denominated bonds over US dollar counterparts...
This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.