Fixed Income Investment Strategy — July 2024

July 8, 2024 — Fixed Income Investment Strategy provides an overview of Sage’s market outlook and sector positioning.

Market Outlook

  • Indicators across employment, inflation, and consumer data hint that the excess savings that shielded consumers from the impact of higher rates has run dry. We believe these trends will continue in the back half and provide latitude for the Fed to cut rates at least once in 2024.
  • Our thesis remains that “the year of bond” has only been delayed, as key forward dynamics such as weakening growth, upcoming Fed cuts, and attractive yield levels are all supportive.
  • Our key positioning themes include modestly long duration and an outsized MBS allocation for attractive yield and to hedge credit risks.

generic image

Featured Insights

generic image
Fixed Income

Does Election Season Influence the Fed’s Decisions?

July 1, 2024 -- As we enter the second half of the year, the market is focused on the leadup to the US presidential election in November. There's a common debate about...

Learn more >

Fixed Income

Fixed Income Perspectives — June 2024

June 24, 2024 -- This presentation provides an overview of our market outlook and key themes, and it illustrates how Sage is positioned in the current environment.

Learn more >

generic image
Fixed Income

A Rising Star — Fed Raises Projections for Long Term Fed Funds Rate

June 17, 2024 -- The interest rate environment over the past nine months has resembled a pendulum as markets (and Fed officials themselves) attempt to shift from a hiking to...

Learn more >