Fixed income

Are investors quiet quitting the US?

May 25, 2026 - 13 min

Lynda Schweitzer, CFA

Loomis, Sayles & Company

Louise Watson

Managing Director, Head of Australia and New Zealand – Natixis Investment Managers

Lynda Schweitzer, CFA, Portfolio Manager and Co-Head of Loomis Sayles’ Global Fixed Income Team, believes that while investors may be underestimating the long-term implications of the Iran War it could also create regional differences that will offer investment opportunities. In this podcast Lynda talks to Louise Watson about:

Why investors are ‘quiet quitting’ the US
Where she is seeing opportunity right now
How her team finds mispriced bonds and where they see opportunity right now
Her outlook for the global economy, fixed income yields, and inflation

This podcast was recorded on Thursday, 23 April 2026.

Louise Watson: Hello and welcome to Navigating the Noise, a podcast by Natixis Investment Managers, where we bring you insights from our global collective of experts to help you make better investment decisions. I'm Louise Watson, and today I'll be joined by Lynda Schweitzer.

Lynda is a portfolio manager and co-head of Loomis Sayles' Global Fixed Income Team. She joined Loomis Sayles in 2001 as a global portfolio specialist and trader, and prior to that, Lynda worked at Putnam Investments and State Street Bank.

Lynda, welcome. We're delighted to have you with us on the podcast today. And I know you're based in Boston, doing this call from Boston, and your sporting teams are killing it at the moment over there.

Lynda Schweitzer: Yeah, they are, Louise. We had our American football team make it back to the Super Bowl for the first time in a long time. And both our hockey team, the Bruins, and our basketball team, the Celtics, are in the playoffs right now. So having a very strong year on the sports scene.

Louise: Awesome. Let's get into some questions. So Loomis Sayles was started in Boston in 1926, and you're celebrating 100 years this year. It's a massive achievement. How are you celebrating the centenary, and what does it mean to you?

Lynda: It's such a great thing to be part of a long tradition of fixed income active management. I also celebrate my 25th year anniversary at Loomis Sayles this year, and I have just enjoyed being a part of the legacy. There are events all through the year, and I'm travelling to Europe and the UK later this year to take part in client events for the Centennial, but really, I'm just excited to be a part of a firm that has this legacy.

Louise: Let's cover some more challenging ground. The war in Iran has changed the world and the global economy significantly in a short space of time. What do you think the long-term implications of the war might be?

Lynda: I think we're going to spend the next six to twelve months figuring that out. The market right now, as of today, wants to act like the war didn't happen, that the long-term impacts are fleeting. We expect to see higher inflation, but I hesitate to use that word 'transitory' again, but it seems like that might be how the market is viewing it. I think, as a team, we're a little bit more skeptical that it is fleeting. We think there will be long-term supply disruptions that will have an impact on both global growth and longer-term inflation.

Louise: And our investors are always asking us where you're seeing the biggest opportunities in global fixed income right now. Where are you seeing some of those opportunities starting to bubble up?

Lynda: We still like many of the EM (emerging markets) local markets where they've had decent economic cycles. They're starting to cut rates, yields are higher, so we're seeing good carry.

With the advent of the war, we're going to have to be a little more specific about which markets we invest in and not, because some regions will be more unduly impacted by the higher oil price and the supply disruption.

But we do think there are some nice spots, like Latin America, where there are some good opportunities for excess returns.

Louise: Now, are there any risks that you and the team are focused on right now that you think investors aren't paying enough attention to?

Lynda: I go back to my answer to the question about the war. The market has taken credit spreads back to almost (as tight as) we saw before the war started. Equity markets are very strong and making all-time highs. So I think the market maybe is underestimating the long-term implications of the war, the higher oil price, the impact on consumers and demand destruction. But we'll see. Corporate health is very strong, and so there might be a good enough cushion there to make sure that it doesn't impact earnings, and the spreads could be justified.

Louise: And I've heard you talk about investors 'quiet quitting' the US. Can you explain what this is and whether you think this trend is still in play?

Lynda: For a long time, we had the US exceptionalism story, and the dollar was strong, the US was outperforming on a global growth story. At the beginning of 2025, we had the rest of the world starting to show stronger signs of growth, so narrowing that growth differential, and the dollar was under some pressure. Then add on top of that 'Liberation Day' and the unreliability of the US administration, and we started to see calls for 'sell America' or 'hedge America'. I'm not sure I buy that it's going to be this kind of one-time, big move, but I do think incrementally investors are going to make different decisions with their next marginal investment dollar. They're going to choose to go away from the US if they can, or hedge a bit more of their dollar exposure, or go back to base, just because of the uncertainty around US policies.

Louise: It's tempting in uncertain markets for investors to sit on the sidelines or stick with their current allocations. Why should investors consider allocating more to the global bond portfolio? Is there an opportunity in uncertainty?

Lynda: There is definitely opportunity in uncertainty. I think the war has introduced a level of volatility and a level of uncertainty that makes events a bit binary. So maybe jumping in at that point isn't the right story.

But as the ceasefire continues, as we start to return to more normal, then I think longer-term implications from the higher oil price will create regional differences that will offer opportunities.

The volatility that we saw in particular corporates or emerging market countries, I think will play out and offer opportunities.

So I think that as we go forward, and if the market's right and we return to normal economic cycles, we're back to this environment where countries are at different points in their economic cycle. So that also creates opportunity. And if we return to that, at the beginning of this year, I was very excited about the relative value opportunities that we might see. And if the market's right and the war is behind us, then we could see that again.

And while Australia is the highest yield in G10, EM has even higher yields that offer good excess return possibilities.

Louise: And you mentioned how vast the global fixed income landscape really is. Can you talk us through how you find these opportunities and give us examples from the past?

Lynda: Sure. So we have a deep research effort that covers macro, sovereign, credit, and securitised. And they're looking across the global landscape for best ideas. Our analysts are doing the bottom-up research and are experts on their issuers, whether that's a country or a corporate. We're looking for those mispricings. We're looking for things that the market maybe has gotten a little bit wrong.

Things like Brazil heading into this election, we're still very favourable, even though the election could go either way. But our analyst has a view that they'll resume rate cuts, which will be good for the market, as well as the election, even though it could go either way, is long-term okay for Brazil.

Other things, like UK water, when Thames <Water> was under pressure within the UK market, all of the UK water utilities widened on the back of that. Our analyst was able to help us identify those which are money good for the long term that don't have the same issues that Thames did, and those have been a good performer for us over the last twelve months.

Louise: The yields for fixed income have increased significantly in recent years alongside higher interest rates, making fixed income a more attractive investment. What's your outlook for global fixed income now, and where do you think yields might go in the next six to twelve months?

Lynda: I wish I knew where yields were going in the next six to twelve months. So much of it does depend on the long-term implications of the war on inflation and on growth.

I do think that places like the UK and Europe are priced for hikes. I have a hard time imagining that they will hike in this environment. So yields there, I think, could rally. We just need a little bit more normalisation around the war and confidence that the ceasefire is going to last. I think that, as I mentioned earlier, the differentiation among economic cycles in the countries means we could have yields in some go up and some go down. So I think there will be good relative value opportunities overall.

Louise: Well thank you Lynda. It's wonderful to be able to share your insights with investors at a time of such great macroeconomic change. If you enjoyed the episode, please tune in again soon to hear more from our global collective of experts.

This material has been provided for information purposes only to investment service providers or other Professional Clients, Qualified or Institutional Investors. Where required by local regulation, this material is only provided upon written request from such investors. This material must not be used with Retail Investors. It is the responsibility of each investment service provider to ensure that the offering or sale of fund shares or third party investment services to its clients complies with the relevant national law.

Please read the Prospectus and Key Information Document, or equivalent offering documents, carefully before investing. If the fund is registered in your jurisdiction, these documents are also available free of charge and in the official language of the country of registration at the Natixis Investment Managers website (im.natixis.com/intl/intl-fund-documents). The fund may not be offered or sold in the USA, to citizens or residents of the USA.

Natixis Investment Managers International or its affiliates may receive or pay fees or rebates in relation to the fund. The tax treatment relating to the holding, acquisition or disposal of shares or units in the fund depend on each investor's tax status or treatment and may be subject to change. Please ask your financial advisor if you have any questions.

To obtain a summary of investor rights in the official language of your jurisdiction, please select the appropriate country/your location and then consult the legal documentation section of the website (im.natixis.com/intl/intl-fund-documents).

In the E.U.: Provided by Natixis Investment Managers International or one of its Branch offices listed below. Natixis Investment Managers International is a portfolio management company authorized by the Autorité des Marchés Financiers (French Financial Markets Authority - AMF) under no. GP 90-009, and a simplified joint-stock company (société par actions simplifiée – SAS ) registered in the Paris Trade and Companies Register under no. 329 450 738, Registered office: 43 avenue Pierre Mendès France, 75013 Paris. Germany: Natixis Investment Managers International, Zweigniederlassung Deutschland (Registration number: HRB 129507). Registered office: Senckenberganlage 21, 60325 Frankfurt am Main. Italy: Natixis Investment Managers International Succursale Italiana (Registration number: MI-2637562). Registered office: Via Adalberto Catena, 4, 20121 Milan, Italy. Netherlands: Natixis Investment Managers International, Dutch Branch (Registration number: 000050438298), Registered office:Amsterdam WTC, Zuidplein 36, WTC, Tower 1, 4th Floor, 1077XV Amsterdam, The Netherlands. Spain: Natixis Investment Managers International S.A., Sucursal en España (Registration number: NIF W0232616C), Registered office: Serrano n°90, 6th Floor, 28006 Madrid, Spain. Luxembourg: Natixis Investment Managers International, Luxembourg Branch (Registration number: B283713), Registered office: 2, rue Jean Monnet, L-2180 Luxembourg, Grand Duchy of Luxembourg. Belgium: Natixis Investment Managers International, Belgian Branch (Registration number: 1006.931.462), Gare Maritime, Rue Picard 7, Bte 100, 1000 Bruxelles, Belgium.

In Switzerland: Provided for information purposes only by Natixis Investment Managers, Switzerland Sàrl (Registration number: CHE-114.271.882), Rue du Vieux Collège 10, 1204 Geneva, Switzerland or its representative office in Zurich, Schweizergasse 6, 8001 Zürich.

In the British Isles: Provided by Natixis Investment Managers UK Limited which is authorised and regulated by the UK Financial Conduct Authority (FCA firm reference no. 190258) - registered office: Natixis Investment Managers UK Limited, Level 4, Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA. When permitted, the distribution of this material is intended to be made to persons as described as follows: in the United Kingdom: this material is intended to be communicated to and/or directed at investment professionals and professional investors only; in Ireland: this material is intended to be communicated to and/or directed at professional investors only; in Guernsey: this material is intended to be communicated to and/or directed at only financial services providers which hold a license from the Guernsey Financial Services Commission; in Jersey: this material is intended to be communicated to and/or directed at professional investors only; in the Isle of Man: this material is intended to be communicated to and/or directed at only financial services providers which hold a license from the Isle of Man Financial Services Authority or insurers authorised under section 8 of the Insurance Act 2008.

In the DIFC: Provided in and from the DIFC financial district by Natixis Investment Managers Middle East (DIFC Branch) which is regulated by the DFSA. Related financial products or services are only available to persons who have sufficient financial experience and understanding to participate in financial markets within the DIFC, and qualify as Professional Clients or Market Counterparties as defined by the DFSA. No other Person should act upon this material. Registered office: Unit L10-02, Level 10 ,ICD Brookfield Place, DIFC, PO Box 506752, Dubai, United Arab Emirates

In Taiwan: Provided by Natixis Investment Managers Securities Investment Consulting (Taipei) Co., Ltd., a Securities Investment Consulting Enterprise regulated by the Financial Supervisory Commission of the R.O.C. Registered address: 34F., No. 68, Sec. 5, Zhongxiao East Road, Xinyi Dist., Taipei City 11065, Taiwan (R.O.C.), license number 2020 FSC SICE No. 025, Tel. +886 2 8789 2788.

In Singapore: Provided by Natixis Investment Managers Singapore Limited (NIM Singapore) having office at 5 Shenton Way, #22-05/06, UIC Building, Singapore 068808 (Company Registration No. 199801044D) to distributors and qualified investors for information purpose only. NIM Singapore is regulated by the Monetary Authority of Singapore under a Capital Markets Services Licence to conduct fund management activities and is an exempt financial adviser. Mirova Division (Business Name Registration No.: 53431077W) and Ostrum Division (Business Name Registration No.: 53463468X) are part of NIM Singapore and are not separate legal entities. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

In Hong Kong: Provided by Natixis Investment Managers Hong Kong Limited to professional investors for information purpose only.

In Australia: Provided by Natixis Investment Managers Australia Pty Limited (ABN 60 088 786 289) (AFSL No. 246830) and is intended for the general information of financial advisers and wholesale clients only.

In New Zealand: This document is intended for the general information of New Zealand wholesale investors only and does not constitute financial advice. This is not a regulated offer for the purposes of the Financial Markets Conduct Act 2013 (FMCA) and is only available to New Zealand investors who have certified that they meet the requirements in the FMCA for wholesale investors. Natixis Investment Managers Australia Pty Limited is not a registered financial service provider in New Zealand.

In Korea: Provided by Natixis Investment Managers Korea Limited (Registered with Financial Services Commission for General Private Collective Investment Business) to distributors and qualified investors for information purpose only.

In Latin America: Provided by Natixis Investment Managers International.

In Colombia: Provided by Natixis Investment Managers International Oficina de Representación (Colombia) to professional clients for informational purposes only as permitted under Decree 2555 of 2010. Any products, services or investments referred to herein are rendered exclusively outside of Colombia. This material does not constitute a public offering in Colombia and is addressed to less than 100 specifically identified investors.

In Chile: Esta oferta privada se inicia el día de la fecha de la presente comunicación. La presente oferta se acoge a la Norma de Carácter General N° 336 de la Superintendencia de Valores y Seguros de Chile. La presente oferta versa sobre valores no inscritos en el Registro de Valores o en el Registro de Valores Extranjeros que lleva la Superintendencia de Valores y Seguros, por lo que los valores sobre los cuales ésta versa, no están sujetos a su fiscalización. Que por tratarse de valores no inscritos, no existe la obligación por parte del emisor de entregar en Chile información pública respecto de estos valores. Estos valores no podrán ser objeto de oferta pública mientras no sean inscritos en el Registro de Valores correspondiente.

In Mexico: Provided by Natixis IM Mexico, S. de R.L. de C.V., which is not a regulated financial entity, securities intermediary, or an investment manager in terms of the Mexican Securities Market Law (Ley del Mercado de Valores) and is not registered with the Comisión Nacional Bancaria y de Valores (CNBV) or any other Mexican authority. Any products, services or investments referred to herein that require authorization or license are rendered exclusively outside of Mexico. While shares of certain ETFs may be listed in the Sistema Internacional de Cotizaciones (SIC), such listing does not represent a public offering of securities in Mexico, and therefore the accuracy of this information has not been confirmed by the CNBV. Natixis Investment Managers is an entity organized under the laws of France and is not authorized by or registered with the CNBV or any other Mexican authority. Any reference contained herein to “Investment Managers” is made to Natixis Investment Managers and/or any of its investment management subsidiaries, which are also not authorized by or registered with the CNBV or any other Mexican authority.

In Uruguay: Provided by Natixis IM Uruguay S.A.. Office: San Lucar 1491, Montevideo, Uruguay, CP 11500. The sale or offer of any units of a fund qualifies as a private placement pursuant to section 2 of Uruguayan law 18,627.

In Brazil: Provided to a specific identified investment professional for information purposes only by Natixis Investment Managers International. This communication cannot be distributed other than to the identified addressee. Further, this communication should not be construed as a public offer of any securities or any related financial instruments. Natixis Investment Managers International is a portfolio management company authorized by the Autorité des Marchés Financiers (French Financial Markets Authority - AMF) under no. GP 90-009, and a simplified joint-stock company (société par actions simplifiée – SAS) registered in the Paris Trade and Companies Register under no. 329 450 738. Registered office: 43 avenue Pierre Mendès France, 75013 Paris.

In the United States: Provided by Natixis Distribution, LLC, 888 Boylston St., Boston, MA 02199 for U.S. financial advisors who do business with investors who are not U.S. Persons (as that term is used in Regulation S under the Securities Act of 1933) or persons otherwise present in the U.S. It may not be redistributed to U.S. Persons or persons present in the U.S. Natixis Investment Managers includes all of the investment management and distribution entities affiliated with Natixis Distribution, LLC and Natixis Investment Managers International.

The above referenced entities are business development units of Natixis Investment Managers, the holding company of a diverse line-up of specialised investment management and distribution entities worldwide. The investment management subsidiaries of Natixis Investment Managers conduct any regulated activities only in and from the jurisdictions in which they are licensed or authorised. Their services and the products they manage are not available to all investors in all jurisdictions.

Although Natixis Investment Managers believes the information provided in this material to be reliable, including that from third party sources, it does not guarantee the accuracy, adequacy, or completeness of such information.

This document may contain references to copyrights, indexes and trademarks that may not be registered in all jurisdictions. Third party registrations are the property of their respective owners and are not affiliated with Natixis Investment Managers or any of its related or affiliated companies. Such third party owners do not sponsor, endorse or participate in the provision of any Natixis Investment Managers services, funds or other financial products.

The index information contained herein is derived from third parties and is provided on an “as is” basis. The user of this information assumes the entire risk of use of this information. Each of the third party entities involved in compiling, computing or creating index information, disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to such information.

The provision of this material and/or reference to specific securities, sectors, or markets within this material does not constitute investment advice, or a recommendation or an offer to buy or to sell any security, or an offer of any regulated financial activity. Investors should consider the investment objectives, risks and expenses of any investment carefully before investing. The analyses, opinions, and certain of the investment themes and processes referenced herein represent the views of the individual(s) as of the date indicated. These, as well as the portfolio holdings and characteristics shown, are subject to change and cannot be construed as having any contractual value. There can be no assurance that developments will transpire as may be forecasted in this material. The analyses and opinions expressed by external third parties are independent and does not necessarily reflect those of Natixis Investment Managers. Any past performance information presented is not indicative of future performance.

This material may not be redistributed, published, or reproduced, in whole or in part.

All amounts shown are expressed in USD unless otherwise indicated.

Natixis Investment Managers may decide to terminate its marketing arrangements for this fund in accordance with the relevant legislation.

DR-79516

Fixed Income Compass - Ostrum AM – April 2026

Markets ignore the war

Ostrum AM's quarterly fixed income and macroeconomic outlook

It pays to be active in fixed income

Why active fixed income matters amid today’s macro landscape is explained by Portfolio Consultant Kevin McCullough, CFA®.

Clouds on the horizon: how fixed income investors can prepare for a more volatile future

Francois Collet, Deputy CIO for fixed income at DNCA, gives an update on his macro view and the challenges currently facing fixed income investors in H2 and beyond.

Information on Fraud Attempts

Americas

Latin America

United States

United States Offshore

Asia Pacific

Australia

Hong Kong

Japan

Korea

Singapore

Europe

Austria

France

Germany

Italy

Spain

Switzerland

United Kingdom

Location not listed?

International

Are investors quiet quitting the US?

Related insights