Where Can Investors Find Value in Fixed Income?

As global investors deal with continued volatility amid negative cues, including sticky inflation and rising interest rates, the equity market has been witnessing severe volatility. Capital is fleeing from the risky asset to safer shores such as fixed income, in the search of stable yet robust returns and the debt market has been delivering on these demands. As an investor, how should you evaluate this evolving paradigm and where should you park your corpus? Global Macro Environment The US Federal Reserve’s chosen measure of inflation has dropped from almost 7% in June to 5% in December which, while being well above the central bank’s target of 2%, is still a strong indicator of disinflation. This has prompted the Fed, a frontrunner in global rate hikes, to slow its aggressive pace and temper its campaign against high inflation. However, market players still expect the...