John Taylor

Political risks and central bank easing pave the way for active managers in the European bond market.

European bond markets are climbing a mountain of worry. Despite the risks, history suggests a positive outcome.

Prospective US policy changes look adverse for Europe’s governments and economies—but mostly positive for bonds.

Balancing credit risk with interest-rate risk in a dynamically managed portfolio can be an all-weather approach.

We think it would be a mistake for investors to let tighter spreads and upcoming maturities deter them from the euro high-yield market.

Across Europe, ruling parties are under pressure. Bond investors should stay active and invested, in our view.

US investors often stick to US markets. But that could be a costly mistake—especially today.

Although markets expect both the Fed and the ECB to cut rates over the summer, macro developments could change that forecast.

Sovereign debt levels soared during the pandemic, and countries at the eurozone’s periphery may look high risk. But appearances can be deceptive.

Policy easing should help euro and UK sovereign bonds, while fundamental, technical and valuation factors are all supportive for euro credit markets.

We believe that—although the battle with inflation is not completely won—inflation is now more likely yesterday’s than tomorrow’s problem.

We believe investors should prepare to back the beneficiaries of lower euro rates-but hold off taking big interest-rate risk positions for now.

UK government bonds prices have plunged recently. Sterling-denominated corporate bonds have also fallen sharply and are looking very cheap.

COVID-19 is triggering a new era of central banking. We believe this will play out just as powerfully in the euro area as elsewhere.

With quantitative easing (QE) set to relaunch in the eurozone, ultra-low or negative rates look likely to extend into the foreseeable future. In this environment, we believe a selective approach and dynamic management are the keys to worthwhile returns in fixed income.

It seems like only yesterday that markets were expecting quantitative tightening (QT) and higher volatility. But now, renewed euro-area quantitative easing (QE) will likely suppress volatility-and bail out the sovereigns that have been struggling the most.

We've been warning investors for some time now that the current phase of the corporate credit cycle is ending. Generally, this will be bad news for corporate bonds, so why do we continue to hold them? The answer lies in knowing which bonds to hold, and which to fold.