Rising government bond yields present stellar comms opportunity

By Ted Harvey, Capital Markets

Rising government bond yields present both challenges and opportunities for asset managers and tech providers. In the following blog, we’ll explore how innovative technology vendors can help address valuation and risk management pain points, offering actionable insights for companies looking to establish themselves as industry leaders amid periods of elevated market volatility.

Rising bond yields – opportunity for tech innovators

Government bond yields are climbing to multi-decade highs across the globe, challenging markets in ways not seen since the 2008 financial crisis. This presents significant valuation challenges for asset managers and asset owners, but it also unearths compelling new opportunities – especially for the most innovative technology providers operating across the space.

These firms have been presented a gilt-edged chance tell compelling stories around how their solutions empower market participants to adapt in one of the most complex and uncharted market environments we’ve encountered in decades. Rising bond yields, combined with persistent market volatility, highlight critical pain points in the valuation and risk management processes of institutional investors. For companies supplying solutions to operational pain points, now is the time to establish a position in the market and highlight how your innovations can empower the financial industry.

This is of course an easy thing to say, but it can be tough to know exactly where to start. But as any strategic capital markets communications agency worth their salt would suggest, the most important first step is nailing down your messaging.

The power of positioning

In a crowded sector like financial markets, honing your messaging to distinguish your brand and frame it in the right light is the only way to stand out. Tired language and stale narratives no longer cut it.

Positioning is also crucial in resonating with target audiences and – most importantly – establishing trust. It is essential in enabling companies to articulate their unique value offering, helping clients identify and address pain points, and connect with diverse stakeholders in a complex, highly competitive industry. Beyond merely driving sales, memorable messaging strengthens brand equity and customer loyalty. So, how can you refine your message?

Here are some top tips on how to position your messaging effectively:

• Build a narrative around stability and precision: Frame your offering as a stability driver in a volatile market, a port in a storm. Highlight how your solutions can help firms achieve more accurate, real-time valuations while navigating rising margin requirements and liquidity constraints. The importance of using clear and engaging language to convey the merits of your platform cannot be overstated. After all, budget decision-makers need to grasp its advantages just as well as the end users it’s designed for.
• Emphasise reliability: Stress the importance of high-quality data in managing fast-changing market conditions. Showcase real-world case studies or testimonials that demonstrate how your technology prevented valuation errors or missed opportunities for clients during times of market stress. And don’t underestimate the power of numbers in bringing data stories to life. What statistics can you highlight that will add some colour to the argument?
• Go beyond words: In the modern media landscape, you are competing for your target audience’s attention with countless other voices and distractions. To hold their attention, you need to get creative. Go beyond words and data to simplify the complexity of derivatives pricing. Use visual aids – be it videos, interactive games or dynamic infographics – as well as explainer campaigns to illustrate how your platform integrates critical inputs like yield curves and volatility metrics into easy-to-use pricing models.

Resonating in turbulent markets

Rising bond yields are not just a challenge – they are an opportunity for tech providers to demonstrate value in an industry under mounting pressure. For capital markets communications teams, the priority should be crafting a clear, compelling story that resonates with asset managers and asset owners struggling to adapt to this environment.

Key Takeaways:

• What challenges do rising bond yields pose for asset managers?
• Rising yields strain valuation accuracy, increase margin requirements, and heighten liquidity concerns.
• How can technology providers address these challenges?
• By delivering tools that enhance precision, reliability, and user simplicity, tech providers can empower asset managers to adapt to volatile markets.
• What should communications teams prioritise in their messaging?
• Focus on framing technology as a solution to industry pain points, using data-driven narratives, case studies, and simplified messaging to build trust and resonate with stakeholders.

About the author:

Ted Harvey is the deputy head of Capital Markets at Aspectus Group. Prior to joining Aspectus, Ted worked for Barret and Cook stockbrokers.