For many investors, fixed income is seen as a defensive asset class, one that exposes them to securities with capital preservation qualities with a good tolerance to risk and a stable income stream.

Investing within this asset class in 2022, however, was very challenging, particularly for bond managers with returns at a 100-year low in Australia, rising inflation and central banks doing a backflip on low cash rate commitments.  

Recently, Andrew Yap, Head of Multi-Asset and Australian Fixed Income, sat down with Jay Sivapalan, Head of Australian Fixed Interest at Janus Henderson, to discuss fixed income performance over 2022, the response of bonds to inflation and interest rate rises, and the most attractive areas for fixed income investment for 2023.