Long-time bond investor Chris Iggo is retiring after a 26-year career at AXA IM Core, BNP Paribas Asset Management. In a final note dated Sept. 25, Iggo predicted bonds are set for a rebound after four difficult years. He argued that increased yields have boosted the allure of debt markets despite ongoing concerns about inflation and government borrowing.

Iggo joined Chase Manhattan Bank in 1989 and worked at Barclays Capital and Cazenove Capital Management before switching to AXA Investment Managers in May 2005. He will leave the firm at the end of the month, having written about 1,000 weekly notes during his tenure. Iggo is making his bullish call at a seismic moment for global debt markets, where fixed-income assets have tumbled this year due to the Iran war pushing up oil prices and swelling government deficits.

He noted that bond yields in the US, Japan, and UK have climbed to multi-year highs. A sustainable bond bull market will require easing geopolitical tensions, a retreat from protectionism, and a different approach to fiscal policy. Without that shift, markets risk another shock that would inflict losses but also create buying opportunities.

Iggo is a long-term supporter of Manchester United. Being a fan of the club had given him plenty to write about but had also become a source of disappointment in recent years, he said. "As is customary for a veteran of the bond market, I think fixed income returns are going to be possibly quite strong over the next year," Iggo said. "Long-duration bonds have been in a four-year bear market. Term premiums have risen.

It is surely time for improved returns.".