Report: Inflation dynamics drive opportunities in the bond market.

Michael Lok of RuiLian Bank stated in a report that in a fixed income strategy, opportunities lie in interest rates and government bond markets, driven by constantly changing inflation dynamics within and between economies. The group's Chief Investment Officer and Co-CEO of Asset Management said, "These opportunities can be captured by having directional views on developed and emerging market rates." He mentioned that these opportunities can also be seized through relative value trades, whether it be changes in yield curve shapes or when comparable risks seem to be mispriced between similar economies. Meanwhile, convertible bond arbitrage is benefiting from several favorable factors. He noted that healthy levels of nominal GDP growth support the credit quality of issuers.