Inflation remains an important consideration for fixed income investors, although the outlook may differ over the short and longer term. Supply pressures and investment in artificial intelligence (AI) could add to inflation in the near term, while productivity gains from AI could contribute to a more disinflationary environment over time.
In this focused Asset TV discussion, Rima Sen, Co-Head of Credit at Willis Towers Watson, joins Jason Davis, European Sovereign Analyst at Capital Group, to consider how institutional investors can prepare for different inflation scenarios and the potential implications for fixed income portfolios.
The conversation covers the opportunities created by higher real yields, the potential to find value across increasingly varied bond markets and the outlook for sovereign bonds. Rima and Jason also consider how AI could affect inflation, productivity and credit markets, and why investors may need to be increasingly selective as the potential winners and losers from AI adoption become clearer.