FICC Fixed Income, Credit, Currency Forum 2018 | [i3] Investment Innovation Institute | 1 November 2018 | The Westin Sydney, 1 Martin Pl, Sydney NSW 2000, Australia

With yields at record lows in recent years, sovereign bonds seem to have been considered the ugly ducklings of the fixed income market. At the same time, corporate debt issuance, especially high-yield debt, has exploded since 2009. Some of which has found their way into exchange traded fund vehicles, creating the illusion of daily liquidity.

But as central banks are gearing up for several rate rises, will corporate debt lose its lustre? Central banks, with the US Federal Reserve leading the way, are trying to move away from the debt-fuelled growth and this will see financing costs rise. In this environment, corporates might find it harder to service and refinance their debt.