Fixed Income Perspectives — November 2025
November 11, 2025 — This presentation provides an overview of our market outlook and key themes, and it illustrates how Sage is positioned in the current environment.
Key Takeaways
- Labor Market Softening Amid Inflation Dynamics – Private data sources confirm slowing hiring; goods inflation rises due to tariffs, but housing and services temper overall acceleration.
- Fed Policy Still Leans Dovish Despite Hawkish Signals – Markets expect further cuts toward a 3% terminal rate; balance sheet runoff ended and expansion anticipated soon.
- Credit Conditions Tight, Spread Risk Elevated – Corporate issuance surges for AI-related Capex; aggregate spreads remain historically tight, though MBS offers relative value.
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