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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Investors are piling back into bonds as recession replaces inflation as markets’ main fear, and fixed income proves its worth as a hedge against the recent stock market chaos.
US Treasuries and other highly rated debt staged a powerful rally during last week’s equity rout, pulling yields to their lowest level in more than a year. While the sharpest moves subsequently reversed, fund managers say they underscored the appeal of bonds in an environment where growth is slowing, inflation is falling and the Federal Reserve — along with other major central banks — is expected to deliver multiple cuts in interest rates by the end of the year.
Investors have poured $8.9bn into US government and corporate bond funds in August, building on inflows of $57.4bn in July, which marked the highest monthly figure since…
