Simon Lue-Fong: «Bonds Can Come Back Into Fashion»

Bonds are entering into a new era as yields rise and the investment environment changes, Vontobel's head of fixed income Simon Lue-Fong told finews.tv.

Central banks are in a difficult position: As growth slows and inflation rises «they are having to choose whether to try and support growth or fight inflation,» Simon Lue-Fong said, adding that raising rates represent an opportunity for fixed income because yields and spreads haven't risen in the past making the reinvestment rate powerful. 

Besides rising yields, geopolitical events are also changing market dynamics which could present additional opportunities as people look closer to home for more security of supplies rather than chasing producers with the lowest cost, he said.