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Some 95% of survey respondents said they are concerned about further rises in interest rates, with 55% of these saying they are 'very concerned'. The corresponding figures for inflation are 90% and 55%, and for falling valuations of fixed income assets, the figures are 85% and 45% respectively.

Some 70% of those surveyed said they are concerned about central bank tightening policies (40% are very concerned about this), and 70% said this about poor yields on many traditional fixed income assets (45% are very concerned about this).

As a result of these concerns, 35% of US pension funds and other institutional investors surveyed expect global bond performance to deteriorate further over the next 12 months - some 25% expect a significant decline. Just 25% believe global bond performance to improve over the next 12 months.

Aeon Investment's research found that 70% of those US professional investors interviewed expect institutional investors to reduce their exposure to fixed income during rest of 2022, and just 15% expect them to increase it. When asked about the institutions they work for, 25% expect them to reduce their exposure by over 15% this year, with a further 30% anticipating a reduction of up to 10%.

Khalid Khan, Managing Director, Aeon Investments said: "Our new research shows that US institutional investors remain worried about the fixed income market - many of them expect further decline and have reduced their exposure. Instead, US institutional investors are reallocating to asset classes that provide a degree of hedging against inflation such as commodities, and others that provide an attractive higher yield but in a relatively low-risk environment such as structured credit."