Learn what investors may see in the coming year in our 2025 outlook for the corporate bond market.
He sees potential risks if inflation remains higher than currently expected in 2024 and the expected interest rate cuts do not materialize, as well as in an "oversupply" of bonds.Eichmann's outlook for corporate bonds is positive: "Experience shows that low growth rates and the prospect of ...
Outlook: Corporate BondsWHAT DOES the hard-working and thrifty Gordon Brown have against pension funds? Yesterday's announcement that the Government would use some of the proceeds of the sale of mobile phone licences to cut gilt sales this year by pounds 2.2bn to just pounds 10bn caused more...
They also underpin our positive outlook for Chinese corporate bonds. History has shown, for example, that policy easings (such as the Fed’s use of quantitative easing between 2008 and 2020) can cause credit spreads to compress significantly. We expect Chinese credit spreads to n...
This means that bonds may continue to provide meaningful returns to investors, not just diversification benefits. The credit markets are currently optimistic about the economic outlook for 2024, as evidenced by the tight credit spreads that reflect low default risk and high demand for corporate debt...
Looking ahead into 2024, the firm expects to see growing demand for alternative investments driven by three broad themes: Displacement: Much of 2023 saw a slowdown in private market activity, which broadly pressured pricing in many alternative assets. This opened considerable investment value in...
Rate Implications for Borrowers The prolonged inverted yield curve, in which longer-term bonds have a lower yield than short-term debt instruments, has led some institutions, including PNC, to predict a mild economic recession in mid-2024. However, if the yield curve begins to show signs of ...
While locking in the yield is a key opportunity today, in our view, finding value in corporate or Emerging Market (EM) bonds remains much harder. We believe EM USD government bonds are one pocket of value in foundation allocations. Stress does still exist in several individual markets, but ...
Lower interest rates in 2024 could spell good news for municipal bonds. Favorable tax policy changes in a presidential election year could also work in favor of municipal bonds.
Stronger EM fundamental backdrop is a key driver of EM USD government bonds’ outperformance; EM USD government bonds offer attractive yields comparable to DM High Yield corporate bonds Fig. 13 Fundamental backdrop of Emerging Market has been improving EM manufacturing PMI and MoM EM USD bonds ...