Fixed Income

Fixed income markets are pricing more than the path of interest rates: they are weighing growth, inflation, and governments’ capacity to manage rising debt. From US and Brazilian election uncertainty to Treasury supply and French bond market volatility, investors may want to consider balancing duration and credit risk while discerning headlines from fundamental change.

Are current rate levels justified by fundamentals and what are the implications for fixed income markets? In our view, higher rates are being driven by resilient nominal growth, fiscal pressures, and an energy shock, rather than a broad reacceleration in inflation.

Emerging market bonds have remained generally resilient despite a sustained oil shock, elevated geopolitical uncertainty, and tighter global financial conditions. Stronger policy frameworks, improved external balances, and healthier macroeconomic fundamentals have helped support performance this year.

In this webinar our experts discussed about the latest developments in the US yield curve and examined Brazil’s elections to assess the implications for fixed income investors.

Developed market fixed income continues to present what we believe are diverse opportunities across sectors. AI-related issuance is reshaping investment-grade credit markets, high-yield investors are navigating a rate-driven repricing with growing dispersion, and Swiss bonds remain a defensive anchor where stability and quality may prove more valuable than headline yield.

Fixed income investors have had to adjust to a dramatic shift in market conditions as the year has evolved.

We believe that the outcome of Brazil’s October election will likely be a contributing driver of Brazilian asset performance heading into year-end, shaping market expectations for fiscal policy, institutional stability, and the medium-term outlook for growth and inflation.

With two-year UST yields at around 4.7%, we think short end yields are offering an attractive potential hedge against both downside growth catalysts and lower oil prices.

Felipe Villarroel delivered the keynote address at TwentyFour Asset Management’s Annual Fixed Income Conference in London on 17 September 2026.

Liquidity is a key consideration in fixed income to determine whether assets can be bought or sold at speed, in sufficient size, with minimal price impact.

Hyperscaler bond issuance has surged in 2026, with volumes already far exceeding previous years. Alphabet, Amazon, Meta, Microsoft, Oracle and SpaceX have issued over $180bn of USD-denominated bonds so far this year.

The US Treasury Department surprised markets yesterday afternoon by announcing an increase in its buyback operations, which will “at least double” to $4bn, from 9 September to 4 November.