As we approach our next Masterclass, speaker Christie Goncalves, Assistant Fund Manager, Fixed Income at Rathbones Asset Management highlights the many moving parts in fixed income and why bonds can seem far more complex compared to equities.

Can you give a quick overview of what your Masterclass session will cover?

The Masterclass will be an introduction to bonds, from the basics of what a bond is, how they work, the relationship of price and yield, as well as some more advanced but often talked-about aspects of the asset class.

What are the challenges surrounding your topic journalists should help their readers understand? How will you be discussing this at the Masterclass?

To many, equities are a much better understood asset class. Bonds can seem far more complex by comparison, as readers need to consider price, yield, maturity - and that’s not to mention often-discussed aspects such as the yield curve. In this Masterclass we will be going through these terms step-by-step and will aim to give the attendees a good understanding of fixed income.

Any general tips for money writers covering your sector?

I think fixed income is generally covered well by journalists. However, I would encourage anyone to ask questions if they are not sure on any aspect of writing about bonds. There are many moving parts in fixed income, and we are always happy to help if something isn’t clear.

What would you like to change about how journalists cover your area of expertise?

As I say, I think the fixed income asset class is well covered, but we are always happy to speak more about what we are doing within our portfolios or how we are allocating to take account of the wider macroeconomic background. Seeing how bonds work within a wider portfolio can really bring the concept to life.

Tell us about the big stories in your sector in the past few months. Could these be rolling stories? 

• The end of the cycle of interest rates hikes: we are likely now at peak interest rates and waiting for rates to come down. What does that mean for bonds returns (could bonds be the new US equities in certain circumstances, such as a recession)?
• Side effects of the high interest rate environment – we have seen US regional bank collapses, commercial real estate losses and provisioning.
• The flurry of primary market activity has been very well supported by investors in the market with high demand.

Finally, why is it important for journalists to have access to initiatives such as Headlinemoney Masterclasses?

The Fixed Income asset class is so intricately linked to the economy and all our day-to-days. Many of us must feel that days are not long enough, and we must pack a lot into our working week. That means it can be hard to really dig down into any given topic, even if important and we might like to. Events such as these masterclasses can really provide the opportunity to understand the subject matter and to ask the questions you may not have time for otherwise. It’s also a great opportunity to get to know people in the industry.

The Headlinemoney Masterclass will be held on Thursday 18 April 2024, where experts from four other financial services companies will give succinct overviews of their sectors for financial journalists. Find out more and book a place.