Insights and perspectives
Explore core fixed income insights from our portfolio managers and research analysts.
Chart of the month
There is already a dispersion between US and European growth. Now, following a Republican election sweep, that differential could become even wider. The potential for tax cuts and trade tariffs means the US faces risks of above-trend growth and potential reinflation, while these policies create a further challenge for a European economy that is already struggling. As a result, cross-Atlantic economic policies and their implications require careful monitoring.
In response to these macroeconomic conditions, our portfolio’s global rates strategy now favours European over US duration. This positioning reflects our assessment of relative growth prospects and inflationary pressures, as well as the potential impact of US trade policies on European economic stability.
Seamus McGorain
Portfolio Manager,
Global Fixed Income Currency and Commodities
Cameron McCrimmon
Investment Specialist,
Global Fixed Income Currency and Commodities
Policies will impact both growth and inflation
Source: IMF, October 2024, World Economic Outlook. Includes cumulative effects of tariffs, trade policy uncertainty, renewal of US TCJA, lower immigration and global financial conditions
Portfolio positioning analysis
Find out how we’re positioning our core fixed income portfolios, based on our latest economic and market views.
PM Perspectives: The tides are finally turning for fixed income
Inflation and labour markets have remained stubborn for some time, causing many major central banks to delay the start of their monetary easing cycles. However, there are signs that these key measures are beginning to ease, which paves the way for fixed income markets to deliver attractive risk-adjusted returns. We believe a strategy with an active approach to investing across the global fixed income spectrum is best placed to capitalise on the opportunities that could emerge as the tide turns for the asset class.
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