For professional investors only.
Times are changing
The outlook for the US is improving. More than 120 million people in the country have now received at least one dose of a COVID-19 vaccine and the economy is also getting a shot in the arm courtesy of a $1.9 trillion fiscal stimulus plan.
Some markets have already reacted to this boost to economic health, but does the reflation trade have further to run? Have yields risen enough in recent months? And how do income investors position their portfolios for what's still to come?
We recently surveyed just over 100 professional investors on these and other questions. Based on the results, we explore the implications of these scenarios and offer some suggestions for income investors.
The outlook for the economy and bond markets
Overall, investors are expecting a very positive economic outlook. But is it all calm ahead? Are there hidden dangers?
In our paper we look at the potential implications of these outlooks on fixed income portfolios and the search for yield, and explore some income opportunities worth considering at this stage in the cycle.
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Data as at 9th April 2021 unless otherwise stated.
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