Market Outlook · November 16, 2020

Fixed Income—What Lies Ahead for Fixed Income Markets?

Joseph Mirsky

SVP, Head of Fixed Income

1 Post-Election Fixed Income Spreads

Historical data continues to support the current post-election trend as corporate bond spreads, and municipal yields continue to drift downward (positive for performance) while treasury yields move upwards (negative for performance).

2 Treasury Yields

During high volatility periods, timing the bond markets is impossible, and it is very easy to get whipsawed. Making the wrong decision at the wrong time could easily wipe out a full year of return or more given your initial investment yield.

3 Corporate Spreads

Our inference is the markets aren't pricing in a global catastrophe and are rallying on the back of improving commentary from quarterly corporate investor calls.

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