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Global Fixed Income — Is it Time to Hedge?

The investment landscape in 2020 has been a challenging one for European bond investors. Sovereign bond yields touched record lows as the unfolding COVID-19 pandemic dampened economic prospects and central banks cut interest rates and expanded asset purchases programs. The case for euro and sterling investors to consider investments beyond their domestic markets for diversification benefits and better risk-adjusted returns is further bolstered by a significant decline in currency hedging costs.