COVID-19 has the world on edge: What does this mean for short term fixed income?
- The prospects of a meaningful curtailment of economic output, including reduced manufacturing and services activity, disrupted global supply chains, and reduced consumption has bled into the market sentiment and caused a sharp downward repricing of risk across asset classes and regions.
- Global earnings are expected to soften as a result of the virus.
- The markets are moving fast and high quality duration still is attractive for front end investors. Liquidity is and always will be the core of what we do.