PWM travelled to Frankfurt to meet leading figures in the German asset management and private banking space and discuss the outlook for fixed income

Concerns about whether bonds still provide protection against falling equities has prompted banks to look elsewhere for diversification

Fixed income has traditionally played an anchor role in both private and institutional portfolios, providing both yield and a counterbalance to equities. But right now traditional bonds are fulfilling neither of those roles, so it is time to replace them?

Unlike their counterparts in equities, bond managers can make money in both good times and bad, believes David Zahn, Franklin Templeton’s fixed income chief in Europe, but they need to be able to read people to really excel

Sanjay Joshi, London & Capital’s fixed income boss, is cautiously optimistic about the state of the global economy, but warns stability brings its own challenges

Those looking for yield from traditional fixed income will be disappointed, so many investors are delving deep into less well trodden parts of the bond markets 

With income hard to find, particularly in swathes of European sovereign debt which is yielding zero or less, investors are seeking out opportunities in more exotic parts of the bond markets

PWM gathered leading figures from the fixed income world to debate the future of the asset class and the role bonds may play in investors’ portfolios