2025’s macroeconomic and political turbulence has shaken up fixed income markets — and has opened up unexpected opportunities.
In our latest Bond Compass, we detail three areas for investors to consider in this volatile climate:
- European credit markets. Germany’s decision to fund more defence expenditure for Europe’s new realpolitik has transformed the dynamics of the continent’s investment-grade market. The resultant growth would also support European high yield bonds.
- Convertible Bonds. Their shorter duration and emerging independence to large-cap equity market movements are helping the asset to weather the turbulence better than many other fixed income sectors.
- Emerging Markets bonds, so often hostage to the Fed, but now liberated by the US dollar’s decline.
We also provide an in-depth analysis of recent inflation trends relevant to fixed income investors, drawing on our PriceStats® metrics.
