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Fasdal on bonds: What to expect in 2015
If you want to
invest in bonds in 2015, there are a few things to watch out for, says Saxo
Bank's Head of Fixed Income Trading Simon Fasdal.
The strong dollar and low oil prices will have a
cooling effect on the US economy, dampening inflation. Therefore Simon expects
any interest rate hikes from the US Federal Reserve to be gentle. As a result,
yields on 10-year government bonds will continue to stay below 3%, and risks for a big global bond
meltdown is very low.
Looking to Europe, Simon expects one last rally
in European bonds when the European Central Bank starts to buy government bonds
in early 2015. There
is a good chance that the bond rally will boost
European equities into a long awaited QE driven rally, says Simon.
Emerging markets are a bit more difficult to
call in 2015, according to Simon. They are likely to be divided by the
low oil prices, which have already negatively impacted producing
countries like Venezuela and Russia. Simon exports expects countries like India and Indonesia to benefit from low oil
prices. Overall Asia and
Europe will benefit most from lower oil prices.
02:54 minutes
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