Bonds can be an appropriate investment in a hiking cycle – as long as you know what to look for, argues Pendal’s head of income strategies AMY XIE PATRICK

Excerpt:

"Even though central banks may need to keep on hiking, now their mantra is very well flagged to the market there is hope that bonds do better in the second half of this hiking cycle.

"It does mean you probably want to look at having bonds in your portfolio as a defensive pillar, more towards the longer end of curves.

"Because the shorter end is directly tied to where policy rates are going. And as we know, nobody has signaled that they're ready to peak and pivot more dovishly just yet."

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