Bond Investors Face Year of Peril With Few Places to Hide

Global bond investors face an old enemy — inflation — and the universe of fixed-income assets doesn’t look to offer much in the way of shelter.

U.S. Treasuries, European sovereigns, U.K. gilts and emerging-market credit are all set to lose money over the 12 months through September as dwindling coupons provide little cushion against rising yields, according to forecasts from Bloomberg Intelligence. Adding to the potentially toxic environment for bonds is the prospect of major central banks unwinding debt purchases and raising interest rates.