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How will your bonds react when central banks act ?

 

Not for the first time, bonds are exceeding expectations. For all that, the bears could still have their day should central banks shed their caution and inflation shake off its shackles. Markets are more fragile than they might otherwise appear. Targeting the best yield opportunities may be more rewarding than banking on all bonds. This chart shows the duration (a bond’s sensitivity to rate changes) of Lyxor’s bond ETFs against their yield. Remember yields are variable and not guaranteed – what you receive might be higher or lower.  Use this chart to understand what might happen to your bond portfolios should things change.

 

Lyxor ETF Fixed Income Yield to Duration​

Disclaimers: 

DSource: Lyxor ETF & Bloomberg.ata and opinions as at 31 August 2017 unless otherwise stated. 

This communication is for professional clients and qualified investors only.

Past performance is not a guide to future performance. Where yields have been quoted they are not guaranteed. Changes in rates of exchange may have an adverse effect on the value, price or income of an underlying instrument(s). Investments in higher yielding bonds and loans issued by borrowers with lower credit ratings may result in a greater risk of default and have a negative impact on income and capital value. Income payments may constitute a return of capital in whole or in part. Income may be achieved by foregoing future capital growth. 

This document is for the exclusive use of investors acting on their own account and categorised either as “Eligible Counterparties” or “Professional Clients” within the meaning of Markets In Financial Instruments Directive 2004/39/EC.

This document is of a commercial nature and not of a regulatory nature. This document does not constitute an offer, or an invitation to make an offer, from Société Générale, Lyxor International Asset Management or any of their respective affiliates or subsidiaries to purchase or sell the product referred to herein.

We recommend to investors who wish to obtain further information on their tax status that they seek assistance from their tax advisor. The attention of the investor is drawn to the fact that the net asset value stated in this document (as the case may be) cannot be used as a basis for subscriptions and/or redemptions. The market information displayed in this document is based on data at a given moment and may change from time to time. The figures relating to past performances refer or relate to past periods and are not a reliable indicator of future results. This also applies to historical market data. The potential return may be reduced by the effect of commissions, fees, taxes or other charges borne by the investor.

Lyxor International Asset Management (Lyxor ETF), société par actions simplifiée having its registered office at Tours Société Générale, 17 cours Valmy, 92800 Puteaux (France), 418 862 215 RCS Nanterre, is authorized and regulated by the Autorité des Marchés Financiers (AMF) under the UCITS Directive and the AIFM Directive (2011/31/EU). Lyxor ETF is represented in the UK by Lyxor Asset Management UK LLP, which is authorised and regulated by the Financial Conduct Authority in the UK under Registration Number 435658.

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