Jim Cielinski, Global Head of Fixed Income, provides his perspective on some of the key macroeconomic factors that are driving fixed income markets.
- A softening in trade has been blamed for much of the global slowdown, but there is more behind it; while trade’s near-term impact on growth may be overestimated, investors could be underestimating some of the second-round effects.
- With the Fed’s pivot to a more accommodative stance, practically the entire developed world is now in easing mode, bringing policy convergence back to the fore.
- Policy normalization, as we know it, is dead. The ability of central banks to normalize today, at a time when the real equilibrium rate is so low, calls into question the efficacy of traditional monetary policy responses.
Global Fixed Income Compass
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