Bright Spots, Macro Risks, Credits & Currencies: Fixed Income Outlook 2020
Why Elaine Stokes, Co-Head and Portfolio Manager of Loomis, Sayles & Company’s Multisector Full Discretion Team, is cautiously opportunistic and sees value plays for 2020.
Elaine Stokes, Co-Head & Portfolio Manager, Multisector Full Discretion Team, Loomis, Sayles & Company is cautiously optimistic about investing across global fixed income markets in the new year. See why:
- Select value opportunities in areas of the market that have witnessed volatility and liquidity, including CCC credits in the high yield market and bank loans
- Central banks’ monetary policy missteps is a top global macro risk
- Credit fundamentals bear watching, especially in late, late cycle
- Small pockets of value seen in emerging market debt
- Growth favors the US, and a strong US dollar among world currencies
Bonds may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity. Below investment grade bonds may be subject to greater risks (including the risk of default) than other fixed income securities.