News Digest:

Contrary to the growing concerns in the markets over the steady hike in interest rates and their potential to wreak havoc on the economy, a large chunk of US investors continue to believe that parking their funds on fixed income opportunities is a good bet today.

A note by CoreData Research says a study of 120 US institutional investors found that 55% of them intended to hike allocations to fixed income if the Fed raises interest rates beyond 5%. In such a scenario, investment grade corporate bonds and government bonds could witness the biggest chunk of their allocations.

Takeaway:

At the same time, the survey also found that emerging market debt did not curry favor as 23% of those surveyed said they would reduce allocations if the Fed upped rates again. In fact, 43% of the respondents believed the Fed wouldn’t raise rates above 5% fearing economic damage.

End Notes

Source: https://www.thetradenews.com/more-than-half-of-us-investors-see-fixed-income-opportunities-from-higher-interest-rates-finds-research/