Our Taxable Bond Team shares how key market developments in January 2025 are influencing their portfolio positioning, sector allocation, and outlook.
Read ArticleA stronger-than-expected economy renewed the market’s concerns about persistent inflation, driving fourth quarter bond market returns well into negative territory.
Read ArticleGW&K's Taxable Bond Team shares how December 2024 fixed income market events are influencing their portfolio positioning, sector allocation, and outlook.
Read ArticleWe use cookies to improve your experience on our website. To accept cookies click Accept & Close, or continue browsing as normal. For more information or to learn how to opt out of cookies, please see our cookie policy.
Accept and CloseGW&K's CIO and Portfolio Managers share their insights and opinions on the economy and market each quarter.
Municipal Bond
While recent fixed income returns have been disappointing, there are several reasons to be optimistic about the asset class.
Read ArticleMunicipal Bond
Fiscal conditions across state governments remain healthy as the sector heads into 2025.
Read Article
GW&K Taxable Monthly Update October 2024
Monthly Update | Oct 2024
The Industrials sector offers investors unmatched diversity in types of companies to invest in — many of which are tied to basic needs, like infrastructure and energy. But how are these companies handling persistently higher inflation, global conflicts and political polarization, and a historically low unemployment rate? We asked two of our Equity Research Analysts, Taylor Cope and Lulu Zheng, for their expert sector insights and outlooks.
Key Takeaways:
TAXABLE BOND MARKET UPDATE & OUTLOOK
year. Lower-quality idiosyncratic stories in CCC-rated securities drove spreads 122 bps tighter, handily outperforming higher-quality BBs, which saw modest spread widening.
2026, making it difficult for front-end maturities to rally meaningfully. Conversely, with the Fed recalibrating before
declaring total victory on inflation, and with fiscal policy still aggressively stimulative, the yield curve could see longer
rates sell off. We are focused on the intermediate part of the yield curve where we find the best risk-adjusted value in
the spread sectors.
they remain attractive relative to post-GFC history, and any significant weakness is likely to be capped by investors
seeking compelling absolute yields.
offered by the asset class
supportive setup for risk assets and their positive carry. However, tighter valuations, a slowing economy, and concerns
around the downside risks warrant an up-in-quality bias and defensive positioning within the spread sectors.
risk-adjusted returns relative to many lower-quality areas of the corporate market. Specified pool valuations stand to
benefit from the concern around higher prepayment activity as investors seek call protection. Asset-backed securities
continue to offer an attractive high-quality source of income in the front end of the yield curve.
Disclosures
GW&K’s Taxable Bond Team shares how October 2024 fixed income market events are influencing their portfolio positioning, sector allocation, and outlook.