Taxable Fixed Income 3Q21 Market Review & Outlook
October 11, 2021 — Core bond markets will likely remain under pressure into year-end, with yields grinding higher as markets prepare for tapering and eventual hikes; however, we don’t foresee a large sell-off or deeply negative returns over the next few quarters. For diversified fixed income investors, we expect strong fundamentals, robust earnings, and high liquidity to support spread levels. While there will be periods of negative returns as rates rise, over past tightening cycles core fixed income has typically seen modest positive returns on an annualized basis, especially in actively managed allocations.
The Winners and Losers of the Great Reflation Trade
Not all commodities have benefitted equally in the reflation/economic reopening trade. Some have long-term structural supply/demand imbalances, while others have seen . . .
Are Markets Prepared for the Fed to Taper QE?
August 24, 2021 -- Fueled by stimulus and pent-up demand from the Covid-induced recession, the U.S. economy staged one of the sharpest recoveries . . .
Fixed Income Returns & Rising Rate Environments
September 10, 2021 -- Given the large moves in interest rates over the past 12 months, investors are focused on the near-term direction of rates. Understandably so . . .