Get an analysis of important drivers of global fixed income markets, including macroeconomic trends, interest rates, currencies, and credit, in our monthly global strategy report.
In this edition:
Can Japan reverse the yen’s decline? Despite large-scale intervention, we believe macro factors will ultimately determine the yen’s path.
Amid this year’s record hyperscaler issuance, we favor selectivity over broad exposure. While hyperscaler credit quality remains strong, the scale and duration of AI-related financing will likely keep pressure on investment-grade spreads.
US: We’re neutral on the US 10-year Treasury. A more constructive view would depend on a more concrete hawkish message from the Fed or a genuine resolution of geopolitical risks.
Europe: We’re also neutral on European rates and expect a September rate hike from the European Central Bank (ECB).
US: We’re neutral on the US dollar because of reduced pressure on the Federal Reserve to hike rates amid slowing growth and inflation.
Eurozone: We’re underweight the euro, based on the eurozone’s lackluster growth and unfavorable interest rate differentials.
In July, Bolivian policymakers announced they’re considering formally recognizing a US dollar-backed stablecoin alongside the boliviano. Our EM strategist explains how stablecoin adoption in high yield EMs could signal policy problems — or progress.
Important information:
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This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy.
Views and opinions are based on current market conditions and are subject to change.
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