Insights

In this four-minute video, Konstantin Boehmer, Co-Lead and Portfolio Manager with Mackenzie Investments Fixed Income Team discusses his perspective on the fixed income markets. Hear how they are responding to one of the worst years for bonds in recorded history.

Here are a few highlights:



• The Team entered 2022 with the shortest duration in their history to help control duration risk.

• As Central Banks continue to hike rates, they are now adding duration, and in Canada specifically, they are now overweight duration.

• As rates continue to rise, they are shifting away from riskier assets in the corporate credit market, high yield, and leveraged loans, and moving into safer assets including government securities and investment-grade corporate credit.

• For Canada, they believe there are currently three more rate hikes priced into the market, although there are already signs that higher rates are having an effect.