15 Mar 2011 | Business

Investing in Bonds - The Latest Chapter 

Please be aware when reading this article that it was written before the recent catastrophic events in Japan. 

Many bond investors have benefited from measures such as quantitative easing. However, as Kenneth Barker, a director in Baillie Gifford’s Institutional Clients Department suggests, this situation may change when the support is withdrawn. And, he argues, investors should consider investing more in emerging market bonds in order to spread the risk and earn attractive returns.

The views expressed in this article are those of the individual manager and should not be considered as advice or a recommendation to buy, sell or hold a particular investment.  They reflect personal opinion and should not be taken as statements of fact nor should any reliance be placed on them when making investment decisions.

As with any stock market investment, there are no guarantees.  Ongoing market conditions and currency exchange rates will affect the value of an investment and any income from it.  Investors should be prepared to accept the risk they may not get back the full amount invested.

Investment in emerging markets, where difficulties in dealing, settlement and custody could arise, may result in a negative impact on an investment.

Bonds issued by companies and governments may be adversely affected by changes in interest rates and expectations of inflation.

You can download the full article here.