Where to buy bonds in the great debt eradication

I know what you’re thinking, a fixed income manager says “buy bonds”. What a surprise. But actually, I think the opposite. I’m not saying “now is the time to buy bonds.” Well, not all bonds.

Now investors are facing a debt eradication. Government bonds are unlikely to give investors the yield they need in a time of high inflation. The best they can offer at the moment will still deliver a net loss in value in real terms. And at the other end of the spectrum in the high yield sector, risks of a global recession are likely to kick off a wave of bankruptcies and a potentially harmful default cycle