A diversified approach is all about balancing yield, capital preservation and long-term growth objectives
[SINGAPORE] As bond markets were buffeted by cross currents of rising energy prices, inflationary pressures and monetary tightening last month, the hunt for yield has become front and centre for investors.
Higher energy prices prolonged by the Middle East impasse has pushed Brent crude above US$100 a barrel, adding upside risks to the global inflation outlook.
Last month, the US Federal Reserve raised rates for the first time in three years to bring inflation back to its 2 per cent target, starting a monetary tightening path along with European Central Bank that hiked deposit rates by 25 basis points (bps) to 2.5 per cent and Bank of Japan, which raised overnight call rates by 25 bps to 1.25 per cent. Both raised rates for the second time this year.