Bond yields are climbing, inflation is proving stickier than expected, and the bond market is sending a very different message to the share market. Sam Watkins (Head of PIMCO Australia & New Zealand) joins us to unpack what rising yields mean for stocks, why AI enthusiasm may be masking broader risks, and how investors can think about fixed income in a world where bonds are once again offering compelling income and portfolio protection.

In this episode:

00:00 – What the bond market is telling investors

04:31 – Why bond yields are rising around the world

08:31 – Government debt, deficits and fiscal sustainability

12:00 – Interest rate outlook: Australia and the US

15:50 – Warren Buffett's warning on higher rates

17:55 – AI euphoria vs bond market reality

20:59 – PIMCO's base case for the economy

23:48 – Why bonds are attractive again

33:31 – How investors can access fixed income today

Stocks & ETFs mentioned: PIMCO Short-Term Active Yield ETF (ASX: EARN), PIMCO Australian Bond Active ETF (ASX: PAUS), PIMCO Global Bond Active ETF (ASX: PGBF)

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This podcast is intended for education and entertainment purposes only. Any advice is general advice and has not taken into account your personal financial circumstances. Before acting on general advice, you should consider if it is relevant to your needs. If unsure, speak to a financial professional. The host of this podcast and their guests may have positions in the companies mentioned. Equity Mates Media is part of the Betashares Group but maintains editorial independence and operates under Australian Financial Services licence 540697.

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