Fixed Income

Higher starting yields have unsurprisingly driven a resurgence in demand for multi-asset credit strategies, which may be well placed to take advantage of a structural backdrop that we think will be a tailwind for credit assets in the medium term.

When government finances deteriorate, how much of that risk should be priced into the borrowing costs of otherwise healthy businesses?

TwentyFour Asset Management’s Pauline Quirin reflects on a quarter in which securitised markets remained resilient despite interest rate volatility and growing concerns around inflation.

TwentyFour Asset Management’s Gordon Shannon reflects on a quarter shaped by higher energy prices, persistent inflation and government bond volatility.

TwentyFour Asset Management’s Felicity Juckes reflects on a quarter shaped by renewed geopolitical tensions, higher energy prices and government bond volatility.

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.