Christian Hantel: «Corporate bond yields are now way higher than dividend yields»

Speaking about how the new scenario of high inflation, tightened monetary policy, and concerns of an economic slowdown is affecting investor sentiment is Christian Hantel, lead portfolio manager of Vontobel's global corporate bond fund.

The U.S. federal reserve has lifted its benchmark rate by 0.75 percentage points to tame soaring inflation, with more hikes likely to follow. Meanwhile, the Swiss National Bank has increased its SNB policy rate by half a percentage point to −0.25 percent on sight deposits.

Hantel tells finews.tv the effects these factors are having on corporate bonds, bearing in mind that many investment grade companies have been preparing for the current scenario by deleveraging and preserving cash flows.