Market Outlook · April 29, 2021

Fixed Income Update: What to Expect as Rates Continue to Rise

Joseph Mirsky

SVP, Head of Fixed Income

What to Expect as Rates Continue to Rise

With the quarter behind us, we reflect on key themes and look to offer some insight into recent moves across the asset class during April. This piece focuses on interest rates, credit spreads and municipals.

  • Interest Rates: Volatility continues in the treasury market with meaningful changes over the course of the last few weeks.
  • Credit Spreads: We would expect the near-term spread widening to be short lived as companies begin to have improved visibility for demand and earnings capture.
  • Municipals: We continue to believe investors will look to municipals as an opportunity to be defensive in a changing tax regime.

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