How will the 2020 US presidential election impact bond markets? Co-Head of Global Credit Research and Portfolio Manager on the Multi-Sector Income Strategy, John Lloyd, anticipates more risk should a left-leaning candidate win the Democratic nomination, with increased volatility possible in sectors such as banking, health care, energy and technology.

 Key takeaways

  • Bond markets have not had a strong reaction to election risk so far this year, given that a more moderate candidate (former Vice President Joe Biden) is currently a front runner in polls.
  • Should a more left-leaning candidate win the Democratic nomination, we would expect to see increased volatility in certain sectors.
  • With Elizabeth Warren and Bernie Sanders both running on a Medicare-for-All platform, health care could face significant ramifications while the banking, energy and technology sectors could also be impacted by some of Warren’s proposed regulations.
 This video was recorded at the end of January 2020.