There are signs that inflation has peaked and is due to come off in the next few quarters.

That would invariably take us to a position, maybe in Q2 2023, where it looks quite compelling for us to own bonds, says Oliver Ge, an assistant portfolio manager with Pendal's Income and Fixed Interest team.

"At that point you’d already see inflation pressures come off and growth indicators start to materially deteriorate.

"Then central banks will in all likelihood tilt their reaction function to be more benign, more dovish. They're not accelerating, there likely won't be more hikes.

"That environment is conducive to owning bonds. You're looking at returns of five to 6% per annum at that point."

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Find out more about Pendal's fixed income strategies at pend.al/fixedinterest

Pendal is an independent, global asset manager. Find out more at pendalgroup.com

There are signs that inflation has peaked and is due to come off in the next few quarters.
That would invariably take us to a position, maybe in Q2 2023, where it looks quite compelling for us to own bonds, says Oliver Ge, an assistant portfolio manager with Pendal's Income and Fixed Interest team.
"At that point you’d already see inflation pressures come off and growth indicators start to materially deteriorate.
"Then central banks will in all likelihood tilt their reaction function to be more benign, more dovish. They're not accelerating, there likely won't be more hikes.
"That environment is conducive to owning bonds. You're looking at returns of five to 6% per annum at that point."
--//-- Find out more about Pendal's fixed income strategies at <a href="https://www.pendalgroup.com/products/asset-class/australian-fixed-interest-funds/">pend.al/fixedinterest</a>
Pendal is an independent, global asset manager. <a href="https://www.pendalgroup.com/">Find out more at pendalgroup.com</a>

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

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