inflationary pressures

It was the week of the central banks. The Bank of England raised interest rates by 15 basis points, the US Fed hinted at three rate hikes and a reduction in the buy-back programme. What exactly the ECB is aiming for is not entirely clear to market analysts. One thing is clear: a rate hike is the ultimum remedium for the central bank of President Christine Lagarde. 

US corporate bonds have performed exceptionally well over the past year, but rising inflationary pressures are rapidly increasing the downside risks. The Capital Group High Income Opportunities Fund is therefore underweight on US corporate paper and sees more opportunities in emerging markets.