Fixed Income Investment Strategy — November 2025

November 18, 2025 — Fixed Income Investment Strategy provides an overview of Sage’s market outlook and sector positioning.

Market Outlook

  • Market Recap: Despite the record government shutdown, rates were largely stable, with 10-year yields near 4.1% and modest front-end declines; Fed guidance and the end of QT drove liquidity concerns and wider credit spreads, though fundamentals remain strong.
  • Economic Outlook: Core economic views are unchanged, with labor market weakness and goods inflation supporting an easing path toward a 3% fed funds rate by 2026; duration is favored over cash.
  • Portfolio Positioning: Current strategy emphasizes yield with controlled risk via modestly long duration and overweight in MBS, maintaining cautious credit exposure amid tight spreads and historically high carry.

  • DATE: November 18, 2025
  • TYPE: PDF
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