Industry Voice: All calm ahead? 2021 fixed income outlook and implications

Find out what other investors expect for the economy, inflation and bond yields; what the implications are for investors; and areas of fixed income worth considering.

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Industry Voice: All calm ahead? 2021 fixed income outlook and implications

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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Important information

This document contains information that is for discussion purposes only, and is intended only for professional investors in Austria, Belgium, Denmark, Finland, France, Ireland, Italy, Germany, Luxembourg, the Netherlands, Norway, Sweden, Spain, Switzerland, Portugal, and the UK and Qualified Clients in Israel.

Marketing materials may only be distributed in other jurisdictions in compliance with private placement rules and local regulations.

Data as at 9th April 2021 unless otherwise stated.

By accepting this document, you consent to communicating with us in English, unless you inform us otherwise.

Any calculations and charts set out herein are indicative only, make certain assumptions and no guarantee is given that future performance or results will reflect the information herein.

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.

This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent.

Nothing in this document should be considered investment advice or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 1995 ("the Investment Advice Law").

Investors are encouraged to seek competent investment advice from a locally licensed investment advisor prior to making any investment. Neither Invesco Ltd. Nor its subsidiaries are licensed under the Investment Advice Law, nor does it carry the insurance as required of a licensee thereunder.

This document has been communicated by Invesco Investment Management Limited, Central Quay, Riverside IV, Sir John Rogerson's Quay, Dublin 2, Ireland, Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henleyon-Thames, Oxfordshire, RG9 1HH, United Kingdom, and Invesco Asset Management (Schweiz) AG, Talacker 34, 8001 Zurich, Switzerland.

EMEA2988/2020

 

 

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