Sage Advice Taxable Quarterly Market Review 1Q2020

Our base-case scenario has shifted from a fragile stabilization going into 2020 to a global recession, with a large contraction in the first half and some recovery into year-end. Given our macro outlook, safety and liquidity remain our current mindset within our fixed income strategies. With the significant reset in spread sector valuations and limited carry in Treasuries and high-quality markets, we believe returns over the coming quarters will ultimately be driven more by spread tightening and security selection opportunities. To this end, we have maintained a close to full duration position to mitigate continued volatility in spreads, but we have started to trim some duration and add to credit opportunistically.

  • DATE: April 5, 2020
  • TYPE: PDF
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