Head of Fixed Income, Mike Sanders, joined Oliver Renick on Schwab Network to discuss bond market trends, the impact of energy on inflation expectations, and the outlook for credit markets. In lower credit quality parts of the market, such as high-yield and low BBBs, Mike says, "You’re not getting paid enough to take on those risks." However, he says there are still opportunities to build a high-quality fixed income portfolio that will likely outperform cash over the next six to 12 months.
Watch the full interview here: https://buff.ly/4fp667B#FixedIncome#InterestRates#BondMarkets
How might shifting expectations for Fed rate cuts impact bond yields? And what is the potential future path of US economic growth and inflation?
Read the high-conviction views from Capital Group’s fixed income team in the latest issue of Fixed Income Perspectives, a quarterly publication covering macro and market insights.
For professional investors only: https://lnkd.in/eUx4SGcB#CapitalGroup#FixedIncome#Bonds
How might shifting expectations for Fed rate cuts impact bond yields? And what is the potential future path of US economic growth and inflation?
Read the high-conviction views from Capital Group’s fixed income team in the latest issue of Fixed Income Perspectives, a quarterly publication covering macro and market insights.
For professional investors only: https://lnkd.in/dxmnKRA7#CapitalGroup#FixedIncome#Bonds
How might shifting expectations for Fed rate cuts impact bond yields? And what is the potential future path of US economic growth and inflation?
Read the high-conviction views from Capital Group’s fixed income team in the latest issue of Fixed Income Perspectives, a quarterly publication covering macro and market insights.
For professional investors only: https://lnkd.in/eweqCeHj#CapitalGroup#FixedIncome#Bonds
How might shifting expectations for Fed rate cuts impact bond yields? And what is the potential future path of US economic growth and inflation?
Read the high-conviction views from Capital Group’s fixed income team in the latest issue of Fixed Income Perspectives, a quarterly publication covering macro and market insights.
For professional investors only: https://lnkd.in/e2vfueJC#CapitalGroup#FixedIncome#Bonds
How might shifting expectations for Fed rate cuts impact bond yields? And what is the potential future path of US economic growth and inflation?
Read the high-conviction views from Capital Group’s fixed income team in the latest issue of Fixed Income Perspectives, a quarterly publication covering macro and market insights.
For professional investors only: https://lnkd.in/ewytXbmr#CapitalGroup#FixedIncome#Bonds
How might shifting expectations for Fed rate cuts impact bond yields? And what is the potential future path of US economic growth and inflation?
Read the high-conviction views from Capital Group’s fixed income team in the latest issue of Fixed Income Perspectives, a quarterly publication covering macro and market insights.
For professional investors only: http://spr.ly/6040imvxu#CapitalGroup#FixedIncome#Bonds
How might shifting expectations for Fed rate cuts impact bond yields? And what is the potential future path of US economic growth and inflation?
Read the high-conviction views from Capital Group’s fixed income team in the latest issue of Fixed Income Perspectives, a quarterly publication covering macro and market insights.
For professional investors only: https://lnkd.in/eweqCeHj#CapitalGroup#FixedIncome#Bonds
The markets have been sold on the idea of a soft landing and have been discounting this scenario until now.
However, they are beginning to realize that it is neither simple nor likely. If we enter a recession or if the landing is not as smooth as anticipated, significant corrections are likely.
Currently, what matters is not inflation or interest rate cuts (which are anticipated for September with inflation under control), but rather macroeconomic data and the ability of economies to avoid depression and contraction.
This is why I believe that good macroeconomic data will once again be seen positively, and bad data will be seen negatively. This shift will reduce market anomalies, bringing us back to normalcy.
Additionally, there is speculation of a second rate cut in September, potentially 0.5% instead of the currently expected 0.25% (currently priced in at 30%).
It's clear that the market is currently propped up by very fragile pillars. We are already seeing how these high valuations and multiples are unsustainable.
At the first sign of disappointing results or unmet expectations, sharp declines are likely.
Managing Director - Financial Intermediaries and Institutional, Switzerland, FLE & Monaco
How might shifting expectations for Fed rate cuts impact bond yields? And what is the potential future path of US economic growth and inflation?
Read the high-conviction views from Capital Group’s fixed income team in the latest issue of Fixed Income Perspectives, a quarterly publication covering macro and market insights.
For professional investors only: https://lnkd.in/eZtFueGc#CapitalGroup#FixedIncome#Bonds
How might shifting expectations for Fed rate cuts impact bond yields? And what is the potential future path of US economic growth and inflation?
Read the high-conviction views from Capital Group’s fixed income team in the latest issue of Fixed Income Perspectives, a quarterly publication covering macro and market insights.
For professional investors only: https://lnkd.in/eBAFyzXy#CapitalGroup#FixedIncome#Bonds
How might shifting expectations for Fed rate cuts impact bond yields? And what is the potential future path of US economic growth and inflation?
Read the high-conviction views from Capital Group’s fixed income team in the latest issue of Fixed Income Perspectives, a quarterly publication covering macro and market insights.
For professional investors only: http://spr.ly/6040iUpQu#CapitalGroup#FixedIncome#Bonds