Fixed Income Perspectives

Worried about inflation? Pay close attention to how labor market dynamics unfold over the next three months.

These are the seven major themes shaping positioning across our fixed income portfolios in the second half of the year.

In anticipation of the upcoming May employment report, we take a look back at last month’s jobs number to put the “disappointing” results in perspective.

During the 1Q20 market dislocation we argued that Securitized Credit was a compelling way to gain access to the eventual rebound of the U.S. consumer—our view today remains the same.

Recent rate volatility suggested a disconnect between investors and Fed policy — does the old mantra of “Follow the Fed” still ring true?

The opportunity cost for inflation protection is high—is it worth the cost?

We continue to believe that inflation will prove to be a cyclical phenomenon, not a structural risk.

Enjoy today’s cyclical bounce, prepare for tomorrow’s structural risk.

While the world has cheered news of a vaccine on the horizon, it will not be available in time to help fight the recent surge in new cases of the virus.

There are still opportunities to prepare portfolios today for the low-yield world ahead—we see the most value in select areas of the CMBS market.