Swiss Life Asset Managers does not expect a lasting rise in inflation. Nevertheless, it remains short duration and neutral credit risk.
Will inflation rates continue to rise? At what level do central banks intervene? Bond investors are uncertain. Swiss Life Asset Managers views inflation as temporary and believes it has already passed its peak in the US.
At the same time, it maintains that current monetary policy might be too loose, especially if inflation does not slow down as expected next time. In that case, markets could price in a faster end to central bank stimulus.
Swiss Life Asset Managers expects US employment and inflation data to bring more clarity in the coming weeks. It therefore focuses on short-term bonds and keeps credit risk neutral.