State of Bond Markets: An Expert View

Amid the COVID-19 pandemic, bond markets are exhibiting extreme and sometimes counter-intuitive behaviors. With government bonds selling off at the same time as riskier assets, the market is telling you that lower rates are not the answer. Although opportunities have arisen in fixed income, investors should be wary of passive exposure to the high yield market and take a selective and cautious approach to separate the ongoing risks from the opportunities.