5.03.2020 62

Fixed Income: Zero rates do not mean zero returns


5 March, 2020

> 10 minutes
Fixed Income: Zero rates do not mean zero returns

5 March, 2020

> 10 minutes

The essential

As we enter the 2020s, a look back over the previous decade provides a key take-away for investors: a zero-rate environment does not lead to zero performance for bond investors. Last year was a clear example as bond markets delivered strong performances with almost – if not above – double-digit returns across the board. Looking back over the past five years, annualised returns across different bond markets were also positive. The Bloomberg Barclays Global Aggregate USD-Hedged index delivered 8.7% in 2019 and an average of 3.5% over the past five years.

Notably, the Eurozone government bond space delivered positive performances despite the negative ECB deposit rate having been in place since 2014, as different factors drove performances at different times, including the higher yields warranted by peripheral bonds, the safe-haven lure of core bonds and credit spread trends.

We enter the 2020s with still very low rates and with some tightness in credit markets after last year’s rally, partially reduced after the recent market sell-off induced by the coronavirus outbreak. We still believe that fixed income may offer room for active managers to deliver attractive performances on the basis of five themes:

  1. GO ACTIVE to navigate the ‘LOWER FOR LONGER’ interest rates environment;
  2. PLAY RELATIVE-VALUE STRATEGIES in government bonds;
  3. SELECT CREDIT IDEAS, with DEMAND even stronger than record SUPPLY;
  4. CAST THE NET WIDE in search of pockets of VALUE; and
  5. RIDE the ‘GREEN WAVE’.


To find out more, download the full paper

Discover Amundi's Fixed Income Strategies

This website is solely for informational purposes.
This website does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. Any securities, products, or services referenced may not be registered for sale with the relevant authority in your jurisdiction and may not be regulated or supervised by any governmental or similar authority in your jurisdiction.
Furthermore, nothing in this website is intended to provide tax, legal, or investment advice and nothing in this website should be construed as a recommendation to buy, sell, or hold any investment or security or to engage in any investment strategy or transaction. There is no guarantee that any targeted performance or forecast will be achieved.

Get in touch with us

Our online help service is available to answer your question.

My personal information

If you have a question about our company or one of our products, please complete the form to get in touch. Please do not mention your account numbers or critical data in this form.

CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

(*) Required fields
All our job offers (Permanent and temporary position, Internship, Apprenticeship or VIE) are available on our dedicated website:

Register and apply directly online.

Amundi on Twitter