GW&K investment experts share their late-2024 review and outlook for municipal bonds.
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Read ArticleMidway through the third quarter, the soft-landing scenario was briefly upended by an unexpected weakening in the labor market that sparked fears around growth and a potential policy mistake.
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US productivity is surging — potentially adding $7 trillion to GDP by 2034. Bill Sterling covers the drivers and potential obstacles in this article.
Read ArticleMunicipal Bond
Results of upcoming US elections will likely affect municipal bonds, tax laws, and borrowing trends. Stay informed with GW&K’s latest muni research.
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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.