Swiss Life Asset Managers is observing initial outflows from corporate bond index funds. It remains defensively positioned on bonds owing to political risks.
Asset prices do not only have to go up all the time. Setbacks were predictable for US tech stocks in particular. Following a prolonged rise, they are triggering price corrections for corporate bonds in EUR and USD. It remains to be seen whether these last.
While government bond yields are within the range of recent months, the credit derivatives market is a cause for concern. According to Swiss Life Asset Managers, investors are maintaining their long positions but hedging themselves against price losses. It is observing initial outflows from investment grade bond ETFs and advises caution in view of numerous political risks. Swiss Life Asset Managers is maintaining its defensive positioning on long duration bonds.