Central bank policy divergence, the nearing end of the US rate cut cycle, and tight credit spreads are shaping a more complex—but opportunity-rich—environment.
Our latest quarterly Bond Outlook highlights the key themes this quarter:
• Heading to neutral? US policy cycle suggests better return potential in the belly of the curve, while UK uncertainty keeps the front end attractive.
• Keep calm and carry on: with Eurozone rates stable and credit spreads tight, AAA CLOs have demonstrated resilient spread behaviour.
• Diversification: why convertible bonds and emerging market local currency debt offer ways to diversify away from core holdings
Plus, our proprietary PriceStats® analysis details easing inflation, and its implications for bond markets.